NIH Tries to Cap University Indirect Research Costs at 15%, Court Blocks It

The National Institutes of Health announced a new policy capping indirect cost reimbursements to universities at 15% of direct research costs, down from negotiated rates averaging 27-50%. The cap would have cut approximately $4 billion in annual funding to university research programs. A federal judge issued a nationwide preliminary injunction within 48 hours, finding the NIH lacked statutory authority to unilaterally override congressionally negotiated rate agreements.