On February 7th, the National Institute of Health (NIH) announced that it was immediately capping facilities and administration costs (F&A, also known as indirect costs) to 15% starting on February 10th, 2025. Although the Administration’s policy was successfully challenged in court, they have appealed the decision. In addition, this does not prevent Congress from enacting similar caps through the appropriations process. Subsequently, the Department of Energy and the National Science Foundation made similar announcements on capping F&A costs at 15 percent. A federal judge issued a temporary restraining order halting the cap on indirect costs at the Department of Energy and a lawsuit was recently filed regarding the National Science Foundation announcement.  

If allowed to stand, these F&A caps will potentially devastate science and scientific research in the U.S. Facilities and administration costs support buildings, equipment, maintenance, and other operations that are vital to research institutions, including universities, which are among the largest employers in every state and a main economic driver. 

Please take this opportunity to urge your members of Congress to ensure that any appropriation bills that they consider guard the ability of institutions to work with federal funding agencies to negotiate F&A rates as well as urging them to express their concerns to NIH, DOE, and NSF leadership. 

Email your members of Congress to let them know the impact of the cap of F&A costs by NIH, DOE, and NSF will have on your work and scientific research in their district and state. Read ASM’s statement on NIH’s recent action. 

Guidelines: Please customize our prepared letter to send to your elected official.