Office of Research

Date: May 29, 2025

Subject: From the Council On Government Relations (COGR): Two important updates regarding the Department of Defense and the National Science Foundation on indirect cost reimbursement rates:

DoD Premature Implementation of 15% Cap on Indirect Cost Reimbursement Rates

A May 14, 2025, memorandum from the Secretary of Defense states that the Department (DoD) will immediately “pursue a lower cap on indirect cost rates for all new financial assistance awards to institutions of higher education, consistent with federal regulation.” The memo specifies that the DoD is pursuing, rather than implementing, a cap and also directs the Under Secretary of Defense for Research and Engineering to, within 21 days:

• Notify the Office of Management and Budget of our intent to cap indirect cost rates for all new financial assistance awards to institutions of higher education at 15% or lower, in accordance with regulatory requirements.
• Develop and publish formal policy guidance – including procedures, decision criteria, and justifications – that will govern all DoD deviations from negotiated rates.
• Ensure that guidance is public and integrated into all upcoming grant solicitations, including Notices of Funding Opportunity.
• Ensure new awards to institutions of higher education contain the newly established standard cap.

COGR members report receiving instructions from some DoD Directorates to immediately submit or resubmit applications using the 15% indirect cost reimbursement rate. As the memo is not written as effective immediately and DoD has subsequently communicated that the rate cap is not yet in effect, members should consider providing this information to any DoD Directorate requiring use of a 15% rate, rather than submitting proposals using less that the institution’s appropriate negotiated indirect cost reimbursement rate.

New NSF Award Language on Indirect Cost Reimbursement Rates

COGR members have reported receiving new NSF award language referencing implementation of a standard 15% indirect cost rate and Case No. 1:25-cv-11231. Notably, this language appears not only in new awards but also in modifications to existing awards (i.e., amendments, continuations, and supplements). This application to existing awards is inconsistent with the NSF Policy Notice 25-034, which specifies that the new policy will not be applied retroactively to existing awards. Furthermore, it conflicts with court orders which retain the possibility to challenge any retroactive application of the policy. Institutions that receive this language in existing awards, issued prior to May 5, 2025, may wish to seek clarification from NSF regarding its applicability.

The new NSF award language states:

Recipient is hereby notified of proceedings and resulting stay in Case No. 1:25-cv-11231 in the United States District Court for the District of Massachusetts. In accordance with the court’s order dated May 19, 2025, NSF is temporarily staying effectuation of Policy Notice: Implementation of Standard 15% Indirect Cost Rate (NSF 25-034). If a court decision permits application of the policy, NSF may unilaterally modify the terms and conditions of this award to impose the Award Specific FATC set forth below, which shall be applicable to the entire duration of the award. NSF may take such unilateral action by notifying the recipient via email or other written communication. In no event shall NSF unilaterally modify this award to impose an indirect cost rate limitation of less than 15 percent of the modified total direct cost base (MTDC).

If a court decision permits application of the policy, in accordance with Policy Notice: Implementation of Standard 15% Indirect Cost Rate (NSF 25-034), reimbursement of indirect costs for this award must not exceed 15 percent of the modified total direct cost base (MTDC), regardless of whether the recipient has a current Federal negotiated indirect cost rate. The recipient must use a rate no greater than 15 percent of MTDC, as defined in 2 CFR § 200.1, for the life of the award, including the award period prior to notification of the application of this term. Excess indirect costs charged to an NSF grant due to use of an incorrect rate will be disallowed. This term and condition supersedes any previously submitted and/or approved budget.

Date: February 14, 2025

Subject: Council On Government Relations (COGR) F&A Cost Reimbursement Resources

COGR maintains a useful up-to-date page on F&A Cost Reimbursement, including a Guide for Updating Websites on F&A/Indirect Costs.

Date: February 13, 2025

Subject: Memo from CUNY Associate Vice Chancellor for Research, Rosemarie Wesson, Ph.D

Dear CARS Members and Grants Officers:

We have received several requests for information to include in the submission of NIH proposals.  CUNY has not issued official guidance to be used when submitting NIH proposals, but the verbiage below is suggested. Feel free to modify to fit your campus needs.

We acknowledge the NIH Supplement Guidance (NOT-OD-25-068) (the “Guidance”) issued on February 7, 2025, limiting indirect cost recovery to a 15% rate. As of February 10, 2025, the Guidance is temporarily enjoined. See Commonwealth of Massachusetts v. NIH, Civil Action No. 25-CV-10338-AK (D. Mass). Accordingly, we are submitting this application using the indirect cost rate as stipulated in our DHHS negotiated rate agreement.

Date: February 11, 2025

Subject: Memo from CUNY Associate Vice Chancellor for Research, Rosemarie Wesson, Ph.D

As things evolve, we will update, as necessary.  For the latest information please consult the Research Foundation of CUNY websites.

Date: February 10, 2025

Subject: Memo from CUNY Associate Vice Chancellor for Research, Rosemarie Wesson, Ph.D

CUNY Research Community:

As you are likely aware, the NIH announced late Friday that effective this Monday (February 10, 2025) Facility and Administrative fees (often known as indirect costs) will be capped at 15%. This announcement is not expected to impact direct expenses and funds dedicated to grant activities. Thus, Principal Investigators (PIs) should continue conducting federally funded research and sponsored programs until they hear otherwise from CUNY and Campus leadership. The potential impact on overall project recoveries is currently being examined and discussed by the CUNY, the RFCUNY and Campus leadership. Facility and Administrative fees [see explainer at RFCUNY website RF CUNY – Understanding Indirect Costs (Facilities & Administrative Costs)] support vital functions associated with our research efforts and our academic mission. We will keep you updated on the developments regarding the NIH and the ever-evolving federal landscape. In addition to receiving direct communications from us, please also regularly review the information and updates on the CUNY Office of Research and Research Foundation of CUNY websites. Thank you.

Date: February 5, 2025

Subject: Memo from CUNY Associate Vice Chancellor for Research, Rosemarie Wesson, Ph.D., & CUNY Research Foundation President, Hector R. Cordero-Guzman

Dear Council of Administrators for Research Success (CARS) Members, Grants Offices, Principal Investigators, and CUNY Research and Sponsored Program Colleagues,

This guidance is intended to provide clarity to the CUNY and RFCUNY responses to challenges that have surfaced related to the management of federally funded grants and projects. The best course of action is to continue to advise Principal Investigators (PIs) to move forward with their funded projects unless they receive formal notification with a stop work order (SWO) specific to their grant/contract from their federal funding agency. We also want to encourage our PIs to continue to apply and pursue federal funding opportunities.

If a PI or anyone on campus receives a stop work order on a Federal Grant please forward the notice to the CUNY Office of Research (OfficeofResearch@cuny.edu) and RFCUNY (PresidentOffice@rfcuny.org).

RFCUNY and CUNY have developed a protocol to review the SWOs that are received. RFCUNY is also maintaining and regularly updating its Federal Government transition webpage. The protocol is available on the RFCUNY website here and includes:

1. Definitions of Key Terms
2. RFCUNY and Campus Review Process for a Stop Work Order (SWO) Directive
3. Notification Process to PIs and CUNY Leadership
4. Risk Mitigation Steps to Comply with SWO Directive after Notification and Agreement with the College President
5. Next Steps to Comply with SWO

Please forward this information to PIs and others in your campus community as needed and appropriate and please send any questions to CUNY OR (OfficeofResearch@cuny.edu) and to RFCUNY (PresidentOffice@rfcuny.org).

We are in this together and we will do our best to provide clear guidance and support each other during challenging times. Thank you.

Date: February 2, 2025

Subject: Memo from NSF Director, Sethuraman Panchanathan

MESSAGE to the NSF PI Community,

On Friday, January 31, 2025, a Federal Court issued a Temporary Restraining Order (TRO) directing Federal grant-making agencies, including the National Science Foundation (NSF), to “…not pause, freeze, impede, block, cancel, or terminate… awards and obligations to provide federal financial assistance to the States, and… not impede the States’ access to such awards and obligations, except on the basis of the applicable authorizing statutes, regulations, and terms.” Although the language of the TRO is directed at State institutions, the Department of Justice has determined that it applies to all NSF award recipients. You can review the TRO here.In order to comply with the TRO, the NSF Award Cash Management Service (ACM$) system is available for awardees to request payments as of 12:00pm EST, February 2, 2025. This message is also available on the Executive Order Implementation webpage. Please check back regularly as we add frequently asked questions (FAQs) based on community feedback.

Sethuraman Panchanathan
Director

Date: January 30, 2025

Subject: Update from CUNY Associate Vice Chancellor for Research, Rosemarie Wesson, Ph.D

We are aware that CUNY funded NSF researchers have received notice that they should cease activities that are prohibited by recent executive orders. We are seeking further clarification on what this means operationally. At this time, we ask for your patience as we traverse these unprecedented times.

Date: January 28, 2025

Subject: Memo from CUNY Associate Vice Chancellor for Research, Rosemarie Wesson, Ph.D, & CUNY Research Foundation President, Hector R. Cordero-Guzman

Dear CUNY,

Since President Trump’s inauguration on January 20, 2025, several Executive Orders have been issued, signaling potential shifts in federal priorities. These changes may affect your proposal submissions, active projects, and funding from federal agencies and sponsors. We know that this news is unsettling, and we all are committed to ensuring that these policy changes have as minimal impact as possible on the CUNY Research Enterprise. At the present time the messaging we have been receiving from our federal funding partners is limited so like you we are working to make the best decisions with unfortunately incomplete data.

As federal agencies adjust to these new developments, both the CUNY Office of Research and RFCUNY will continue to provide updates, guidance, and relevant resources to help you navigate these changes. Please also check the CUNY Office of Research and RFCUNY websites for ongoing updates. If you receive any new information, please forward it to OfficeofResearch@cuny.edu and PresidentOffice@rfcuny.org.

Proposals CUNY campus Grants Offices will continue to submit proposals as long as federal agency submission systems are operational. However, sponsor review timelines may be extended while federal agencies adjust. . Proposal deadlines could also be affected, so we recommend that researchers confirm deadlines with sponsors directly.

Awards The terms and conditions of your executed award remain in effect as long as your award is active. This includes your ability to invoice and receive reimbursement. If there are any changes to your award, the PI and Research Foundation should receive an amendment for review and execution.

Award Compliance Diversity, Equity, Inclusion and Accessibility (DEIA) and other compliance requirements may be modified either directly by federal agencies or sponsors, or on a project-by-project basis. CUNY Office of Research, RFCUNY and campus Grants Offices will share any updated information as it becomes available. You may also receive instructions directly from your Program Officer. It is crucial to respond quickly to any new reporting requirements, as failure to comply could jeopardize your funding.

Program Changes If specific programs are terminated, restructured, or reduced, you may face challenges in accessing funds or meeting new eligibility criteria. Funding for certain programs may be rescinded, reduced, or redirected, which could cause delays or pauses in payments for existing grants. If this occurs, further guidance will be issued, and we will keep you informed. PIs may also be contacted directly regarding the status of their federal award.

Please forward any communication received from funders to your campus Grants Office, copying both PresidentOffice@rfcuny.org and OfficeofResearch@cuny.edu.

Thank you for your attention to these important updates. If you have any questions or need additional assistance, please reach out to your campus Grants Office, CUNY Office of Research or RFCUNY.

• 2025 Administration Transition Information & Resources | Council on Governmental Relations
• Notices
  Notice of intent to suspend enforcement of contractual DEI terms in existing agreements (issued Jan 23, 2025)
• DHHS
  HHS Directive on Immediate Pause Issuing Documents and Public Communication.pdf
• Department of Justice (DOJ)
  NIJ FOAs cancelled: Current Funding Opportunities | National Institute of Justice (Jan 27 2025)
• Department of Energy (DOE)
  DOE removes PIER Plans
• National Aeronautics and Space Administration (NASA)
  NASA DEIA removal
• National Science Foundation (NSF)
  Archived NSF Opportunity – Focus on Recruiting Emerging Climate and Adaptation Scientists and Transformers (FORECAST) (Archived Jan 27, 2025)
• OMB
  Jan 27, 2025 – The OMB Memo issued on the freeze of all Fed Funding. The temporary pause will become effective on January 28, 2025, at 5:00 PM