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NIH Lowers Maximum Indirect Cost Rate For Research Institutions

The administrative building of the National Institutes of Health is shown in Bethesda, Md., Aug. 17, 2009. (AP Photo/J. Scott Applewhite, File)

The US National Institutes of Health recently announced a significant change in its policy regarding the maximum “indirect cost rate” that research institutions can charge the government. This move has sparked concerns among scientists about its potential impact on the nation's research capabilities.

Previously, the average NIH grant to an institution included around 30% allocated for infrastructure costs such as facilities, maintenance, and security. Some institutions were charging as high as 60% for these indirect costs. However, the new NIH policy will now cap the indirect cost rate at 15%.

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