FROM: Chris Patton, Interim Vice President for University Relations, Universities of Wisconsin
DATE: Feb. 9, 2025
Late Friday, the National Institutes of Health notified the Universities of Wisconsin and other higher education institutions across the country that “there will be a standard indirect rate of 15% across all NIH grants for indirect costs in lieu of a separately negotiated rate for indirect costs in every grant.” This
policy change is effective Monday, February 10, and will be applied to (1) the go-forward expenses for all current grants and (2) all new grants issued on or after February 10.
For comparison, UW-Madison’s current negotiated indirect rate with NIH is 55% and other UWs range between 31% to 57%, depending on the type of grant activity and size of the university. The funding loss of this change would be significant – and compounded if similar directives are issued by other federal grant funding agencies.
We are in contact with the Governor’s office, the Wisconsin Department of Justice and the multi-state litigation group to identify potential next steps regarding litigation options, and we are working with our colleagues nationally. Additionally, over the weekend we have been communicating with members of Wisconsin’s Congressional delegation and will continue to advocate in the days ahead. We will keep you apprised of any new developments.