The U.S. Department of Defense (DoD) will cap indirect cost rates at 15% for all new grants for universities, according to a May 14 memorandum.
While the policy does not apply retroactively to existing awards, the memo states that the department will engage in an effort over the next 30 days to renegotiate indirect cost rates on existing financial assistance awards to institutions of higher education.
This move follows similar indirect cost rate caps announced by several federal agencies, including the National Institutes of Health and National Science Foundation. While these federal actions continue to garner legal challenges, university leaders continue working to determine the implications to our research enterprise.