The National Institutes of Health’s Office of the Director issued a policy change notice Feb. 7, announcing that the standard rate of indirect costs would be 15% for all current and future grants. The Northwestern community is uncertain of how the policy, which was scheduled to take effect Monday, will affect the University.

Indirect costs are expenses that do not directly fund research, like the salaries of administrative staff, accounting fees and rent and utilities.

NIH reported that the average rate of indirect costs was previously between 27% and 28%, and some organizations charged even higher at over 50%. In the 2023 fiscal year, NIH estimated that they spent around $9 billion on overhead costs.

“The United States should have the best medical research in the world. It is accordingly vital to ensure that as many funds as possible go towards direct scientific research costs rather than administrative overhead,” the NIH Office of Director said in the announcement. 

Illinois, along with 22 other states, filed a lawsuit Monday against the NIH and the U.S. Department of Health and Human Services. The Association of American Medical Colleges, which represents medical schools across the country, filed a similar lawsuit in response to the policy change.

U.S. District Judge Angel Kelley issued a temporary restraining order late Monday night, blocking the NIH from implementing the new policy until further notice. Kelley also scheduled an in-person hearing for both cases Feb. 21.

In a statement released on Monday, Andrea Joy Campbell, Massachusetts attorney general and one of the state attorneys leading one of the lawsuits, said, “We will not allow the Trump Administration to unlawfully undermine our economy, hamstring our competitiveness or play politics with our public health.”

The Feinberg School of Medicine receives significant amounts of its funding from the NIH. In the 2023-2024 school year, they received a total of $461 million in NIH awards and ranked 13th in NIH funding amongst all American medical schools.

Tyler Dorsett, a Senior Research Administrator for Basic Science Administration at Feinberg, said that it’s “business as usual” right now. According to Dorsett, the NIH is still accepting proposals and issuing awards, and there haven’t been any major interruptions. 

However, the policy changes have caused stress amongst Feinberg staff and researchers, according to Dorsett. 

“A lot of my colleagues have thought at one point or another, ‘How exactly is this going to affect my job?’” Dorsett said. “A lot of the professors I manage have contacted me to ask, ‘How is this going to affect my research?’”

Many Northwestern students are involved in research labs and have concerns about how the funding cuts will affect the future of science.

“People do their best work when they’re not afraid funding is getting cut,” Weinberg sophomore Anna Humphrey said. “Research is a years-long process and you don’t want to feel rushed or pressured.” 

“I think it’s important to get good science, not just efficient science,” Humphrey said.

If the 15% rate policy is formally implemented, Dorsett said he believes it will mostly impact “central offices” in Feinberg, like Accounting Services for Research and Sponsored Programs. 

These “central offices” are not directly involved in scientific research. Instead, they manage administrative tasks, like submitting grant applications and processing transactions. Without their support, Dorsett said the workload of researchers would increase significantly. 

Weinberg sophomore Lily Prokop said researchers already have to make difficult choices to make sure they have enough money to continue their projects, and this policy would exacerbate that problem.

“It sounds like it could lead to a lot less progress being made in important areas like medicine,” Prokop said. “It seems like it will close doors.”

Email: merylli2027@u.northwestern.edu

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