May 18th, 2025
Dear Colleagues,
On May 2nd, the National Science Foundation introduced a new policy that caps indirect cost recovery, also known as Facilities and Administrative (F&A) costs, at 15% on grants and cooperative agreements. F&A costs represent the infrastructure and administrative support necessary to conduct research, such as lab space, utilities, and compliance services. The change is effective May 5, 2025 and does not affect current awards but will apply to all new NSF proposals and awards after the effective date.
However, due to ongoing litigation, NSF released a statement pausing its implementation of this new indirect rate through June 15th when a hearing is scheduled to occur.
Additionally, court orders involving agencies such as NIH and DOE continue to permit us to charge regular rates. SPA staff are closely monitoring developments and we will communicate any changes to PIs as needed. As of today, we continue to submit proposals at the current federally negotiated rate