ACOI Lends Support to New Indirect Research Cost Model

ACOI, alongside nearly 300 organizations, is asking Congress to support a new model for ensuring that institutions’ essential scientific research costs are adequately supported. The groups are hoping Congress will embrace the work of the Joint Associations Group on Indirect Costs (JAG) and will stop the Office of Management and Budget from instituting arbitrary caps on “indirect costs” or “facilities and administration” (F&A) support for National Institutes of Health (NIH) grants.  

On Feb. 7, 2025, the Trump Administration announced it would dramatically cut NIH grants by capping the rate grants pay for “indirect funding” at 15 percent. The abrupt change was opposed by ACOI and others in the medical community. Litigation halted implementation of the policy, although the federal government has appealed the case.  

The new model put forward by the JAG  — the Financial Accountability in Research (FAIR) Model — centers on improved transparency and better alignment of indirect cost reimbursement with specific research project needs. The way indirect costs are spread across research at an institution has been targeted by critics who say it allows institutions to evade accountability on how federal dollars are spent. 

CAPITOL ROUNDS NOVEMBER 2025