Congress inserted language in recent legislation that prevents federal agencies from changing how they calculate or cap reimbursement for universities’ indirect costs for the coming fiscal year. The restriction halts an administration proposal that had threatened to impose a sharp, flat overhead rate on grants awarded by agencies such as the NIH. University leaders and research offices had warned the change would have cut billions from campus research budgets and forced layoffs. The reporting named University of Illinois science-policy adviser Kelvin K. Droegemeier and university negotiators as key voices pushing alternatives; advocates described the move as a temporary reprieve while longer-term negotiations continue. "Indirect costs" refers to overhead expenses—facilities, utilities and central administration—that federal grants reimburse at negotiated rates. Institutions will now retain existing negotiated rates while the policy debate moves to Congress and the agencies.
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