DOE Puts 15% Cap on Universities’ Indirect Research Costs

DOE Puts 15% Cap on Universities’ Indirect Research Costs

While the DOE claims the plan will save taxpayers $405 million, research groups say it’s a “ruinous” policy that will “slow the pace of American research and innovation.” Two months after the National Institutes of Health unilaterally capped indirect research cost reimbursement rates at 15 percent—which a federal judge has permanently blocked—the Department of Energy announced a similar plan Friday that explicitly applies to higher education ins…

DOE Slashes University Grant Overhead, Saving Taxpayers $405 Million Annually

The U.S. Department of Energy (DOE) announced a significant policy change last week aimed at reducing administrative spending by colleges and universities receiving federal research grants, setting a new cap on indirect cost reimbursements at 15 percent. In a policy memorandum dated April 11, 2025, the Department outlined its decision to standardize the rate for […] DOE Slashes University Grant Overhead, Saving Taxpayers $405 Million Annually