[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-584188-105":3,"detail-sidebar-cat-0-en-105":81,"doc-detail-584188-en":130},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","universities-and-indirect-costs-for-federally-funded-research-updated-january-29-2026","Universities and Indirect Costs for Federally Funded Research - Updated January 29, 2026","","Analyzes how U.S. federal funding for research and development at colleges and universities is divided into direct and indirect costs, and how indirect-cost reimbursement rates have been determined and debated since the 1940s. Explains the typical pre-negotiated indirect cost rate range (30%–70%) and describes policy proposals in early 2025 that would impose a uniform 15% rate. Summarizes congressional restrictions and the potential consequences of changing indirect cost rates for federal savings and university research infrastructure, including impacts on public and smaller institutions.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & Report",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/universities-and-indirect-costs-for-federally-funded-research-updated-january-29-2026/584188/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/universities-and-indirect-costs-for-federally-funded-research-updated-january-29-2026/584188.png","ImageObject",300,407,{"name":42,"@type":43},"Kyle","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-11-04","2026-10-15",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",7,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"What are direct and indirect research costs in federally funded R&D?","Question",{"text":63,"@type":64},"Direct costs are readily identifiable with a specific project or program, such as salaries and laboratory supplies. Indirect costs include items like utilities, research administration, and library costs that support research but are not easily tied to a single project.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"How are indirect cost reimbursement rates typically determined for IHEs?",{"text":68,"@type":64},"Indirect cost reimbursements are usually set using an indirect cost rate that is pre-negotiated with the federal government and varies by institution.",{"name":70,"@type":61,"acceptedAnswer":71},"What issues does Congress consider regarding potential changes to indirect cost rates?",{"text":72,"@type":64},"Congress considers possible consequences such as federal savings and effects on university R&D infrastructure, including whether support for indirect costs should change and how impacts may fall on public research institutions or smaller IHEs.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},584188,1792230307,{"code":4,"msg":82,"data":83},"success",[84,88,92,96,101,106,110,114,119,122,126],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":85,"show_sort_weight":86,"slug":87},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":89,"show_sort_weight":90,"slug":91},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":93,"show_sort_weight":94,"slug":95},"Exam",70,"exam",{"id":97,"doc_module":4,"doc_module_name":25,"category_name":98,"show_sort_weight":99,"slug":100},5,"Comic",60,"comic",{"id":102,"doc_module":4,"doc_module_name":25,"category_name":103,"show_sort_weight":104,"slug":105},6,"Technology",50,"technology",{"id":55,"doc_module":4,"doc_module_name":25,"category_name":107,"show_sort_weight":108,"slug":109},"Healthcare",40,"healthcare",{"id":111,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":112,"slug":113},8,30,"research-report",{"id":115,"doc_module":4,"doc_module_name":25,"category_name":116,"show_sort_weight":117,"slug":118},9,"Religion & Spirituality",20,"religion-spirituality",{"id":117,"doc_module":4,"doc_module_name":25,"category_name":120,"show_sort_weight":117,"slug":121},"World Cup","world-cup",{"id":123,"doc_module":4,"doc_module_name":25,"category_name":124,"show_sort_weight":123,"slug":125},10,"Lifestyle","lifestyle",{"id":127,"doc_module":4,"doc_module_name":25,"category_name":128,"show_sort_weight":97,"slug":129},19,"General","general",{"code":4,"msg":82,"data":131},{"doc_id":79,"user_id":132,"nickname":42,"user_avatar":133,"doc_module":4,"category_id":111,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":117,"language":139,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":12,"update_tm":143,"read_time":104,"preview_page_count":4},3985741905716,"https://ap-avatar.wpscdn.com/davatar_994ba38a5ba835b3df7d355c54d3ed8d","Universities and Indirect Costs for Federally Funded Research  \nUpdated January 29, 2026  \nCongressional Research Service  \n[https://crsreports.congress.gov](https://crsreports.congress.gov)[ ](https://crsreports.congress.gov)R48540  \nUniversities and Indirect Costs for Federally Funded Research  \nThe federal government is the largest source of academic research and development (R&D) funding in the United States, providing funds through more than two dozen federal agencies. U.S. colleges and universities, often referred to as institutions of higher education (IHEs), play a role in the U.S. R&D ecosystem and in supporting American innovation, competitiveness, and economic growth. In 2023, federal funding accounted for $53 billion of the $102 billion in R&D performed at IHEs. Federal support for R&D comprises two main types of costs—direct and indirect.  \n• Direct costs of research are those that can be readily identified with a specific project or program, such as salaries and laboratory supplies.  \nR48540  \nJanuary 29, 2026  \nMarcy E. Gallo  \nAnalyst in Science and Technology Policy  \nLaurie Harris  \nAnalyst in Science and Technology Policy  \n• Indirect costs—such as utilities, research administration, and library costs—cannot be readily connected to an individual project or program but nevertheless are necessary to conduct research.  \nThe amount of federal funds that should be allocated to the direct costs, compared to the indirect costs, of federally funded R&D performed by IHEs has been a subject of debate since the 1940s. Broadly, the method and policies associated with determining federal reimbursement of indirect costs have varied (e.g., full reimbursement, negotiated rates, fixed percentage of direct research costs). As of January 2026, indirect cost reimbursements for IHEs are typically determined by an indirect cost rate that is pre-negotiated with the federal government and varies by IHE—ranging from 30% to 70% . In the first half of 2025, the National Institutes of Health (NIH), the Department of Energy (DOE), the National Science Foundation (NSF), and the Department of Defense (DOD), which is “using a secondary Department of War designation” under Executive Order 14347 of September 5, 2025, released policies that would impose a 15% indirect cost rate on all R&D awards to IHEs. As of the date of this report, Congress has prohibited the implementation of these policies through language included in various appropriations acts and other laws. For example, the Commerce, Justice, Science; Energy and Water Development; and Interior and Environment Appropriations Act, 2026 (P.L. 119-74), requires the Department of Commerce, the National Aeronautics and Space Administration, NSF, and DOE to continue to use the negotiated indirect cost rates in effect in FY2024. The National Defense Authorization Act for Fiscal Year 2026 (P.L. 119-60) prohibits the Secretary of Defense from changing or modifying the indirect cost rates for DOD grants and contracts awarded to IHEs and nonprofits until the Secretary certifies to congressional defense committees that DOD has (1) worked with the extramural research community to develop an alternative indirect cost model and (2) established an implementation plan with “adequate transition time to change budgeting and accounting processes” for affected IHEs and nonprofits. At issue for Congress are the potential consequences of changes to indirect cost rates (e.g., federal savings, effects on university R&D infrastructure) and whether, and to what degree, the federal government should support indirect costs.  \nAs Congress assesses policies and potential actions related to indirect costs for federally funded R&D at IHEs, the evolution of how indirect costs have been determined and debated, including potential alternative approaches, may be of interest. For example, Congress has previously considered fixed indirect cost rates, capping indirect cost rates broadly or for a subset of IHEs, and freezing","cbCaijiEhrQpPFir","https://ap.wps.com/l/cbCaijiEhrQpPFir","pdf",825140,"English","# Introduction\n# Research Costs and Federal Support\n# Selected Major Federal Activities on Indirect Costs\n## Fixed Rates\n## Negotiated Rat","[{\"question\":\"What are direct and indirect research costs in federally funded R\\u0026D?\",\"answer\":\"Direct costs are readily identifiable with a specific project or program, such as salaries and laboratory supplies. Indirect costs include items like utilities, research administration, and library costs that support research but are not easily tied to a single project.\"},{\"question\":\"How are indirect cost reimbursement rates typically determined for IHEs?\",\"answer\":\"Indirect cost reimbursements are usually set using an indirect cost rate that is pre-negotiated with the federal government and varies by institution.\"},{\"question\":\"What issues does Congress consider regarding potential changes to indirect cost rates?\",\"answer\":\"Congress considers possible consequences such as federal savings and effects on university R\\u0026D infrastructure, including whether support for indirect costs should change and how impacts may fall on public research institutions or smaller IHEs.\"}]","Universities and Indirect Costs for Federally Funded Research - Updated January 29, 2026 | PDF",1792050154]