STAT+: What are indirect research costs? A quick explainer in light of NIH's sweeping policy change

Science is complicated, and so are the rules that govern how it’s paid for by the federal government.

An abrupt Friday afternoon announcement from the National Institutes of Health that it would slash support for indirect research costs paid to universities, medical centers, and other grant recipients left academics bewildered and deeply concerned that the policy change would grind scientific progress to a halt. Many universities get an extra 50% or more on each grant to cover overhead; starting Monday, that rate will drop to 15% for new and existing grants across all institutions.

The agency’s decision also raised basic questions about what these costs are and how they’re handled by the federal government across research sites.

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