March 7: Foreign Assistance Review emails
We are aware that some UK investigators have received emails requesting they undertake a “Foreign Assistance Review” from federal agencies. If you receive a such an email, please do not respond but instead send that federal agency communication and any other questions specifically related to research awards to ospa@uky.edu and vpr@uky.edu. Those offices will communicate with you to coordinate any required response.
Feb. 21: Federal Judge Extends Pause on Cuts to NIH Indirect Costs
A federal judge has kept in place an order blocking the administration from implementing a cap on how much indirect costs the National Institutes of Health pays grant recipients. The temporary restraining order was set to expire on Monday, Feb. 24, and has been extended until U.S. District Judge Angel Kelley can make a final decision on whether to issue an injunction on the proposed change. Read more on nytimes.com. UK community members have free access to digital versions of the New York Times and Wall Street Journal by subscribing through UK Libraries.
Feb. 11: Judge Blocks Cuts to NIH Indirect Costs
A federal judge in Boston ordered a nationwide temporary pause on plans by the National Institutes of Health to substantially slash indirect cost reimbursements for research to universities, medical centers and other grant recipients. Read more on nytimes.com. UK community members have free access to digital versions of the New York Times and Wall Street Journal by subscribing through UK Libraries.
Feb. 10: NIH Notice on Indirect Cost Rates
- The National Institutes of Health (NIH) issued guidance on Feb. 7 regarding cuts to federal research grants. Specifically, the NIH announced it would cap the rate for what are known as “indirect costs” to 15% for all existing and new NIH contract awards. On Feb. 10, litigation was filed by multiple states challenging this decision.
- If this policy change is enacted, it will impact the way we do research at the University of Kentucky. It will cost UK tens of millions of dollars annually and will hit our local and state economies. More important than any numbers, though, it will impact the work we do to advance the health of Kentucky in those areas most critical to our future — including cancer, heart disease, Alzheimer’s and addiction.
What does this specific policy directive from the NIH mean?
- The NIH is the largest funder of health research in America. In the past five years the University of Kentucky — as a major health research and clinical institution — received an annual average of $159 million in NIH awards (grants and contracts).
- Those awards fund basic science research into the diseases and illnesses that most impact Kentucky: cancer, diabetes, heart disease, children’s health, aging-related illness, opioid use disorder and many others.
- Awards have two major components. There are direct costs — dollars directly associated with the scientific research in question.
- And there are indirect costs — what are often called Facilities and Administration or F&A. Those are dollars associated with the award to pay for items that make that research possible. That could be the construction and outfitting of a lab, research equipment, utilities such as ventilation, heat and lighting, associated technology and graduate students who work in the lab setting.
- That indirect cost or rate is negotiated for a period of time between an institution — like UK — and the NIH. Those rates range from 20% of the cost of a grant to 54%, depending upon the research being conducted and the terms of the award.
- For example, a $1 million grant with a 37% indirect rate would mean that $1 million directly funds research; $370,000 ultimately goes to the university to allocate to pay those support costs, like facilities, equipment, technology and personnel. The structure for how those dollars can be used is very prescribed.
- Cutting the rate to 15% — what the NIH has described as a benchmark for what private foundations that award grants provide — would cut tens of millions of dollars in essential support services to scientists and clinicians who are asking the most important questions about the biggest health challenges Kentucky faces. This one change, if enacted for the next 12 months, would represent a cut of at least $40 million to the University and its critical research efforts on behalf of the health of our state.
- Too, the comparison between a private foundation providing a grant around research in education policy, for example, simply does not involve the same cost or cost structure as a basic science grant that could include building and lab space and all the supports that go along with that infrastructure. The complicated discovery and research our investigators perform cost more than the research often funded by private foundations.
How the university is responding:
- Our government relations team is meeting with our congressional delegation and others to communicate how fundamentally important and serious this issue is to our community and all those we serve through discovery and healing.
- Our cabinet, deans and other leaders are meeting regularly to confer on this and other issues to ensure we remain careful and prudent stewards of our resources — that we are moving thoughtfully to protect what we do and the future of our research enterprise.
- We will comply with all federal and state laws and policies. That is our responsibility. At the same time, we will forcefully advocate
for what we do and our vital mission to advance this state. This includes advocating for the restoration of these critical research dollars.
- We will continue to keep you informed of important updates.
Jan. 29: Rescission of OMB Federal Aid Pause
- The Office of Management and Budget (OMB) rescinded its pause on federal agency grant, loan and other financial assistance programs on Jan. 29.
- As of Jan. 29, unless you have received a notice to suspend activities for a specific award from a sponsor, you can continue your research activities.
