The National Institutes of Health (NIH) has released NOT-OD-25-068: Supplemental Guidance to the 2024 NIH Grants Policy Statement: Indirect Cost Rates, which introduces significant changes to indirect cost rates for grants awarded to institutions of higher education (IHEs).
Effective February 10, 2025, NIH will apply a 15% indirect cost rate to:
- All new NIH grants issued on or after this date.
- All existing NIH grants for expenses incurred from February 10, 2025, forward.
The guidance clarifies that NIH will not retroactively apply the new cap to previously incurred expenses under existing grants but asserts that it has the authority to do so under 45 CFR 75.414(c).USC is closely analyzing this new guidance and actively engaging with our higher education association partners to assess its full implications. We recognize that certain aspects of the notice require further clarification, and we will provide guidance as more information becomes available.