The following message was shared with all OHIO employees on Tuesday, Feb. 11, 2025.
On Friday, Feb.7 the National Institutes of Health (NIH) released supplemental guidance related to the indirect cost rates for both new and existing grants.
This new guidance indicates that the indirect cost rate for all NIH grants will be 15 percent, effective immediately. Most universities, including Ohio University, negotiate their indirect cost rate with the federal government. Our institutional rate was renegotiated in fall of 2024 and is currently 52 percent. Indirect costs represent real and necessary costs to the University including building and systems operations, maintenance and equipment for labs and administrative support.
The immediate NIH change to 15 percent, not only for new awards but for existing awards, would naturally have a significant impact at all R1 research universities. Multiple lawsuits were filed on Monday calling the action unlawful. This includes a lawsuit jointly filed by the Association of American Universities, the American Council on Education and the Association of Public and Land-Grant Universities along with several national research universities.
Ohio University’s Division of Research and Creative Activity is in the process of fully evaluating the potential impact of this change on our institution’s research activities should it move forward. Preliminary estimates suggest that an immediate reduction to 15 percent for active grants at OHIO would result in a decrease of approximately $600,000 in funding for this fiscal year, ending June 30.
Guidance to Researchers
At this time, the Division of Research and Creative Activity is asking researchers working on NIH grant proposals to continue utilizing our federally negotiated rates until further guidance is provided.
For existing awards, the direct cost budget is intact and work can and should continue according to the statement of work and budget. More information can be found on the Federal Funding FAQ page on the Research website. Researchers with specific questions about funded projects or proposals should reach out to the Office of Sponsored Research and Programs at orsp@ohio.edu .