One of the seismic shocks to the business model of a university is the new administration’s decision, in February 2025, to limit the reimbursement of indirect costs to 15% of the value of the grant. For instance, reimbursement for administrative costs is capped at something like 26%, reimbursement for fellowship and training costs are limited to 8%, and for equipment and tuition remission costs are capped at 0%, meaning the University does not a reimbursement of overhead from the NIH on equipment such as the centrifuge purchase and tuition payments of grad students working on the research. Perhaps the funding shock is a chance for deans and presidents to educate donors on the need to cover both “direct” and “indirect” costs to cover the expenses associated with conducting research and hence change the model of giving to a research university.
Author: Shivaram Rajgopal, Contributor, Shivaram Rajgopal, Contributor https://www.forbes.com/sites/shivaramrajgopal/
Published at: 2025-05-17 19:52:54
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