Cuts to Indirect Federal Grants Could Change Research for the Better

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Cuts to Indirect Federal Grants Could Change Research for the Better

On February 7, the National Institutes of Health (NIH) announced that it will be reducing its negotiated proportion of grant funding that goes to overhead, or “indirect costs,” to 15 percent across the board.  Indirect costs are basically fungible dollars that a research institution can spend however it wants. They are meant to cover all the ancillary services that researchers need, like human resources, information technology, buildings and gro…