UW–Madison responds to NIH announcement about indirect cost cap

The following statement is in response to the federal directive issued on February 7, 2025 to change the Facilities and Administration (F&A) rate for all existing and ongoing new National Institutes of Health (NIH) research awards to 15 percent, set to go into effect on February 10, 2025.

The University of Wisconsin–Madison is one of the world’s leading engines of biomedical research. This proposed change to NIH funding – UW–Madison’s largest source of federal support – will significantly disrupt vital research activity and delay lifesaving discoveries and cures related to cancer, Alzheimer’s disease, diabetes, and much more.

In addition, these reductions will have an inevitable impact on student opportunities to engage in research activities, from undergraduates to Ph.D. and medical students. Medical innovation will be slowed, delaying the creation of new treatments, new technologies, and new health workers.

The so-called ‘indirect costs’ go to support many aspects of the educational and research work of the university. Indirect costs contribute to everything from utilities charges to building out the laboratories where science is done, to infrastructure for clinical trials of new medicines and treatments.

Drastic reduction to this funding will not only disrupt the day-to-day important work of the university but will ultimately harm the livelihoods of real people across Wisconsin and the country, harm the innovation economy and will make our nation less competitive.

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Find higher education association statements below:

Association of American Universities
Association of Public Land-Grant Universities
American Association of Medical Colleges
American Council on Education