The Senate Appropriations Committee released its report on the Fiscal Year 2026 Labor, Health and Human Services, Education, and Related Agencies (LHHS) Appropriations Act, which includes language in support of facilities and administrative (F&A) or “indirect” costs on federally funded research grants.
The Committee emphasized that indirect costs are essential for sustaining the infrastructure and administration required to carry out cutting-edge biomedical research. Indirect costs cover critical needs such as specialized air systems in cell therapy labs, secure data systems to protect patient genomic information, and support for the next generation of scientific leaders. The report also recalled that past efforts to cap indirect cost reimbursement, most notably a 2018 proposal to limit NIH’s indirect cost rate to 15 percent, were rejected by Congress. The Committee reaffirmed that such restrictions would undermine research progress and noted that stakeholders are working through the Joint Associations Group on Indirect Costs to explore future reforms.
Earlier this year, ADLM sent a letter to key congressional offices urging them to protect full indirect cost reimbursement and oppose proposals to cut or cap these funds. ADLM stressed that undermining indirect cost support would weaken laboratories’ ability to advance diagnostic innovation, train scientists, and maintain the infrastructure necessary for high-quality research.
ADLM will monitor developments closely and advocate for the resources laboratories and research institutions need to sustain innovation and advance patient care.”
