RE: Supplemental Guidance to the 2024 NIH Grants Policy
Statement: Indirect Cost Rates
Dear Colleagues,
On Friday, February 7, 2025, the National Institutes of Health (NIH) issued a notification pertaining to indirect cost rates on current and future NIH grants. Indirect cost rates are reimbursements for related but indirect costs for facilities and administration necessary to support the funded research activity. Per the notification, award recipients for any new grant issued, and for all existing grants to Institutions of Higher Education (IHEs), are capped at a 15% indirect cost rate. NJIT’s current negotiated rate with the federal government is 50.5%.
Yesterday, attorneys general representing 22 states, including New Jersey, filed a lawsuit against the NIH and others, requesting a temporary restraining order to prevent implementation of this change. The judge in that case granted a temporary restraining order. Therefore, NJIT will continue submitting proposals with the federally approved rate of 50.5% at this time. The temporary restraining order is set to remain in effect until a hearing scheduled for February 21, 2025. NJIT leadership continues to work with contacts at federal and state agencies to monitor this situation and will communicate any developments as rapidly as possible.
The faculty, staff, and students of NJIT have long used federal funding to conduct groundbreaking and vital research that positively impacts our state, our nation, and our world, and the university both appreciates and values your commitment to our public research mission as we continue to navigate this rapidly evolving situation.
Please visit our website periodically for updates on this situation.