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.

Earlier today, the Trump administration rescinded its OMB directive implementing a sweeping freeze on
federal grants and loans.

The decision came after U.S. District Court Judge Loren L. AliKhan temporarily blocked the Trump
administration from implementing the order in response to a legal challenge from a network of nonprofit
organizations. This order, which only applies to existing funds that were already slated to be dispersed, is
set to expire on February 3 at 5 p.m. AliKhan is expected to render a more lasting decision during a hearing
scheduled for February 3. A separate lawsuit has been filed by a group of 22 states, including Wisconsin, and
the District of Columbia also seeking to block the freeze. At this moment, it’s unclear how far the lawsuits
will proceed.

In the meantime, the administration says it will continue its review of federal spending.
In addition, we agree with the following recommendation from NASH (the National Association of Higher
Education Systems:

“Given uncertainty about next steps, NASH recommends that federal grantees make every effort to stay up
to date on drawing down federal funds in accordance with applicable laws, regulations, and grant terms. In
addition, recipients and subrecipients should consider looking closely at the terms and conditions of their
award agreements, agency-specific implementations of the Uniform Guidance (including appeal procedures
for grant disputes, to the extent the agency has them), and the authorizing statute and any implementing
regulations for the programs they are working on to evaluate their options if the government suspends or
terminates their awards in the future.

We will comply with all applicable law and are committed to cooperating with law enforcement within the constraints of the law and our own delegated responsibilities. 

If any Government Agent Comes to Your Workplace   

• Be respectful 

• Take enough time for yourself to think through and formulate your answers.  

• Ask the agent for their name and to see their government issued badge.  Most likely the agent will show you their badge without you asking.  If not, it is your right to ask for this.    

o   If the agent approaches a student worker first, the student should immediately get their supervisor and/or their human resource (HR) representative.  

• Verify the agent’s identity and agency with badge.   

• Ask the agent why they are on campus if they have not shared that information already.  

• Ask the agent to have a seat in a waiting room or lobby. If you do not have such a space, politely ask them to wait where they are while you try to reach the proper contact.  

• Call the Office of General Counsel (OGC) at 608-262-2995 [or your Office of Legal Affairs and number for UW-Milwaukee and UW-Madison] and speak with one of the attorneys. 

• [Campuses: Determine whether individuals should also call campus police to alert them of another law enforcement entity on campus]   

o   Tell the attorney the following information: “Agent X from the Department of Y is here to talk to you about Z.”   

o   Do not leave a message with Legal.  

o   If no one from UW Legal is available, tell the agent that no one is available right now. Ask him if he can come back another time.    

• Do not give the agent access to any paper files or access to any computer systems.   

 Agents are free to enter any public areas of your workplace but must have a valid search warrant to enter a non-public area.  Do not give your consent to enter a non-public area.  

• Public areas may include reception, waiting areas and lobbies; open dining areas such as cafeterias; restrooms; and other common areas accessible by members of the public without screening or escort. Non-public areas include private offices and laboratories; private residential rooms; classrooms and lecture halls that are currently in use; and other secured or restricted-access areas designated for instructional or research use.   

• A valid warrant must be signed and dated by a judge. It will include a period within which the search must be conducted, a description of the premises to be searched, and a list of items to be searched for and seized (e.g., payroll records, employee identification documents, I-9 forms, SSA correspondence, etc.).  

The agents may be federal or state officers, federal or state auditors or other similarly situated individuals.