Update on NIH Indirect Cost Rates

February 9, 2025

Dear Research Community,

Most of you have likely been following the recent policy changes announced by USAID, NSF, NASA, and DOE in response to the federal executive orders. The most recent new policy is an announcement published on Friday by the NIH regarding the Supplemental Guidance to the 2024 NIH Grants Policy Statement: Indirect Cost Rates, which stipulates a significant change starting Monday. According to the NIH announcement, the policy now sets a standard indirect cost rate cap of 15% for all NIH grants. This rate is a sharp departure from our current negotiated rate.  This news has understandably raised serious concerns across our research community and beyond.

We recognize the momentous challenges this new policy poses, and we assure you that we are closely monitoring the situation. Our leadership team, including our colleagues from Legal, Finance, HR, and Government Affairs as well as other key stakeholders at Wake Forest University, is working diligently to understand the full impact. State academic organizations and national academic communities, as well as national organizations, are also advocating on behalf of the research mission, and we are actively involved in these efforts.

In the coming days and weeks, we will continue to provide updates to ensure you have the latest information. Please don’t hesitate to reach out to us with questions. We will work with the College and Schools to provide opportunities to share your concerns and discuss the changing landscape, and we will provide answers as we have them. 

If you are contacted by any agency regarding any potential delays, discontinuations, or reductions in funding related to your research, please reach out immediately to the Vice Provost for Research, Scholarly Inquiry, and Creative Activity (Kim McAllister: mcallik@wfu.edu). Our team is here to support you in maintaining compliance with the new directives and to assist you with any concerns that arise. Additionally, please don’t hesitate to contact your Department Chairs or the Dean’s Office with any questions or clarifications.

We remain steadfast in our commitment to advancing your research and scholarship. We are grateful for your dedication and for all that you do.

Thank you for your continued collaboration and patience as we all navigate this constantly changing environment.

Sincerely,

Kim

A. Kimberley McAllister, Ph.D.
Vice Provost for Research, Scholarly Inquiry and Creative Activity