March 26, 2025: The following information appears on the NIH website: "NIH institutes and centers are issuing awards for competing, non-competing continuation, and administrative supplements using previously approved negotiated indirect cost rates, except for awards under which F&A costs are reimbursed at a fixed rate. See NIH Grants Policy Statement 7.4 Reimbursement of Facilities and Administrative Costs."
March 5, 2025: AAMC Statement on Preliminary Injunction Against Cuts to NIH-Funded Research.
February 11, 2025: AAMC Lawsuit Results in Nationwide Temporary Restraining Order on Proposed Drastic Cuts to NIH Funding.
Facilities and Administrative (F&A) costs are an essential part of the total costs of research and are necessary for safely, securely, efficiently, and effectively conducting world-leading research. Unlike the direct costs of research, such as project-specific research salaries and supplies, F&A costs are not easily assignable at the project level.
F&A expenses include costs of utilizing state-of-the-art research laboratories, facilitating high-speed data processing, compliance with national security protections (e.g., export controls, cybersecurity, research data security), patient safety protocols (e.g., human subjects protections); radiation safety and hazardous waste disposal; personnel required to support essential administrative and regulatory compliance work, maintenance staff, and other activities necessary for supporting research.
The federal government reimburses an institution at an agreed upon proportion of the F&A costs the institution incurred to conduct research based upon the F&A cost reimbursement rates it negotiates with the institution.
The following resources are intended to further understanding of the complex issue of F&A reimbursements, including the potential effects of current policy proposals, for faculty members and others in the academic community.
AAMC Materials:
- F&A Infographic
- F&A Costs of Research One-Pager
- Costs of Research FAQ
- Comparing Foundations to Federal Government Research Support
- Breaking Down the Costs of Federal Research at Universities