Federal Funding Update - 2/10/25

Research Affairs is closely monitoring the NIH’s February 7, 2025, announcement regarding the reduction of the indirect cost rate to 15% for both new and existing grants. This reduction was paused by a temporary injunction issued by the federal court in Boston on February 10, 2025.  Indirect costs, also referred to as Facilities & Administration (F&A) costs, fund critical infrastructure and support services essential to federally funded research. These costs include the construction and maintenance of laboratory facilities, internet and information technology services, and oversight teams responsible for biosafety and regulatory compliance, among other resources and support. The proposed rate reduction would have a significant impact on research activities at Loma Linda University Health. However, there remain uncertainties regarding the policy’s implementation, as well as potential effects from ongoing legal challenges and congressional budget decisions. Research Affairs will continue to monitor developments and provide updates as more information becomes available.