ADLM Urges NIH to Withdraw Guidance Capping Indirect Costs

On February 27^th, ADLM submitted a comment letter to NIH Acting Director Dr. Memoli urging the agency to withdraw its Supplemental Guidance to the 2024 NIH Grants Policy Statement: Indirect Costs Rates. Issued on February 7, 2025, this guidance imposes a 15% cap on facilities and administrative (F&A) costs for all grantee institutions—a decision made without public engagement that ADLM warns may force many academic medical centers to scale back or discontinue vital research.

F&A costs, or indirect costs, are critical for covering overall infrastructure expenses—such as maintenance, utilities, security, biohazard containment, and regulatory compliance—that support highly specialized research. Unlike foundation grants that are typically focused on specific medical conditions, NIH-sponsored research is more scientifically complex, long-term, and resource intensive, necessitating flexible funding arrangements.

In a significant legal development, and win for the scientific community, U.S. District Court Judge Angel Kelley issued a nationwide preliminary injunction on March 5^th, blocking this policy while legal challenges proceed. The decision suggests that the plaintiffs are likely to succeed in overturning the policy, and reflects ADLM and other’s concerns about the adverse impact it would have on academic research funding.

While ADLM is not opposed to a review of the indirect cost funding mechanism, the association believes any changes must be evidence-based and made in consultation with all affected stakeholders—including Congress, academic research centers, scientific societies, and patient advocates.