NIH’s indirect cost reimbursement cap would have ‘disruptive impact’ on UB research

BUFFALO, N.Y. – The National Institutes of Health’s (NIH) plan to cut indirect cost reimbursement for NIH-funded research grants will have “a significantly disruptive impact on UB’s ability to carry out lifesaving medical research,” University at Buffalo officials said today.

The NIH announced on Feb. 7 that it will cap reimbursement for indirect costs, also known as facility and administrative (F&A) costs, on grants awarded to colleges and universities to 15%. Research universities such as UB rely on F&A funding for research infrastructure, laboratory equipment, data security, data storage, federal compliance and other overhead costs.

On Monday, a federal judge in Boston temporarily blocked implementation of the policy in response to a lawsuit filed by the New York State attorney general — with support from the State University of New York (SUNY) — and 21 other states challenging the legality of the federal order. SUNY has been working closely with the attorney general, the governor’s office, and leading national higher education organizations, and will continue to do so.

“Clearly, this is an incredibly trying time for our university community,” said President Satish K. Tripathi. “With the many policy changes made by the federal government in recent weeks and the rapidly shifting federal landscape, we continue to closely monitor everything that is transpiring, provide guidance to members of our scholarly community who have been impacted by these actions, and share meaningful updates to keep our students, faculty and staff apprised.

“While these policy developments have created understandable confusion and concern within our scholarly community, we remain committed to upholding our education and research mission for the benefit of people and communities locally and around the world.”

NIH-funded research at UB is focused on a wide-range of vital, lifesaving projects, including developing new treatments for multiple sclerosis, improving health outcomes for cancer patients receiving chemotherapy, saving the lives of newborns during neonatal resuscitation, developing new methods to detect potential brain aneurysms, and investigating the major causes of disease and death in women.

Currently, there are approximately 300 NIH-funded research projects at UB. The university receives $81 million annually from NIH to fund lifesaving medical research.

If implemented, the impact to UB will be significant. UB’s indirect cost rate is, on average, about 40%. The university estimates that capping cost reimbursement at 15% will result in a loss of at least $47 million to UB over the next three to five years, including $7 million through June 30 to support research, labs, equipment, federal compliance protocols and other overhead.

A website launched last week by the Office of the Vice President for Research and Economic Development is providing updates to the campus about new federal orders and policy affecting the university and higher ed in general.