On February 7, NIH officials unexpectedly received a memo from the Department of Health and Human Services mandating an immediate announcement of a significant cap on indirect costs associated with NIH grants. This cap, which reduces prior negotiated rates as high as 75% to 15%, alarmed researchers across universities and hospitals, leading to fears of laboratory shutdowns and staff layoffs. The memo, delivered without advance notice, appeared to present itself as a standard NIH policy, creating further confusion among agency staff who did not see it until it was made public.
The abrupt memo from HHS ordered a dramatic cap on indirect costs for NIH grants, limiting rates as high as 75% to just 15%, severely impacting research.
NIH officials received the memo unexpectedly and were instructed to post it online with no prior notice, leading to confusion and chaos across research institutions.
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