Madison Reporter

The University of Wisconsin–Madison has issued a response to the recent federal directive that will alter the Facilities and Administration (F&A) rate for all existing and new National Institutes of Health (NIH) research awards. The change, announced on February 7, 2025, will cap the indirect cost rate at 15 percent, effective February 10, 2025.

UW–Madison, recognized as a leading institution in biomedical research, expressed concern over the impact this funding change could have on its operations. "This proposed change to NIH funding – UW–Madison’s largest source of federal support – will significantly disrupt vital research activity and delay lifesaving discoveries and cures related to cancer, Alzheimer’s disease, diabetes, and much more," the university stated.

The university highlighted potential consequences for student involvement in research across various levels of education. It warned that "these reductions will have an inevitable impact on student opportunities to engage in research activities, from undergraduates to Ph.D. and medical students." Furthermore, it noted that medical innovation could be slowed down as a result.

Indirect costs are essential for supporting numerous aspects of educational and research work at the university. These funds cover expenses such as utilities charges, laboratory infrastructure, and clinical trial facilities. The statement emphasized that "drastic reduction to this funding will not only disrupt the day-to-day important work of the university but will ultimately harm the livelihoods of real people across Wisconsin and the country."

The announcement has drawn attention from several higher education associations including the Association of American Universities, Association of Public Land-Grant Universities, and American Association of Medical Colleges.