Dear Colleagues:

Yesterday afternoon the National Institutes of Health (NIH) announced its intention to place a cap of 15% on indirect costs – also known as “facilities and administrative” costs – which are an integral part of NIH grants to universities and research institutes. The notice applies to all recipients of NIH funding and is poised to go into effect on Monday, February 10.

A cut of this magnitude would potentially have deep impacts on medical care, human health, and America’s place in the world as the leader of biomedical research.

Impacts on Stanford research, if the change is implemented, would be significant. Indirect costs are the way the government invests in research infrastructure for the nation and are vital to our research activities. They are real costs, providing the resources needed for buildings and labs, equipment, and staff who support our research.  (A summary of the types of investments indirect costs support is here.) For Stanford, the cap announced Friday would represent a reduction in NIH funding of approximately $160 million per year. These funds support, for example, construction of laboratory space, the purchase and maintenance of scientific tools, and research computing – infrastructure that enables breakthroughs in fields ranging from cancer care to neuroscience to population health.

We are working with partners around the country on this issue. We will keep you informed as the situation evolves, and will be doing everything we can to ensure support for the research mission of the university.

Sincerely,

Jenny Martinez, Provost

Lloyd Minor, Dean of the School of Medicine and Vice President for Medical Affairs

David Studdert, Vice Provost and Dean of Research