NIH Reduction in Indirect Cost Rates
NIH Reduction in Indirect Cost Rates
February 08, 2025
Dear UMB Community,
The University of Maryland, Baltimore (UMB) continues to monitor and assess the changes coming from the federal administration including yesterday’s NIH Supplemental Guidance to the 2024 NIH Grants Policy Statement: Indirect Cost Rates which states "there will be a standard indirect rate of 15 percent across all NIH grants for indirect costs in lieu of a separately negotiated rate for indirect costs in every grant.” The change is set to go into effect on Monday, Feb. 10 for new and existing grants to institutions of higher education.
UMB is in communication with the Maryland Attorney General's Office to discuss whether the NIH has the legal authority to enact a cut in this way and to determine appropriate next steps. We are also working with our Congressional delegation and partners, including the Association of American Medical Colleges (AAMC), to ensure that the lifesaving work we do for the state of Maryland and beyond is not undermined.
We anticipate prompt response and clarification. Until then, you should proceed to do your work as set forth in your approved grants and contracts.
The federal policy landscape is shifting and changing by the day, and we continue to advocate for UMB’s work toward our mission to improve the human condition and serve the public good. We will continue to update you as things develop.
Sincerely,
Bruce E. Jarrell, MD, FACS
President