By SUSAN JONES
In another late Friday announcement, the National Science Foundation said on May 2 that it is capping its indirect cost rate at 15% for all new NSF grants to colleges and universities, effective May 5.
An email detailing this abrupt change was sent to the Pitt community on Sunday evening from Provost Joe McCarthy; Dwayne Pinkney, executive senior vice chancellor for administration and finance and chief financial officer; Rob Rutenbar, senior vice chancellor for research; and Anantha Shekhar, senior vice chancellor for the health sciences.
“Ultimately, the full impact of this change in the short and long term remains to be seen, but there is no doubt that our collective scholarly impact could be harmed irreparably, as could our broader mission,” the email said. “We recognize time is of the essence, as is the importance of taking our next steps thoughtfully. We will continue to keep you updated as more information becomes available.”
The email said that Pitt leaders recognize “the significant impact this guidance could potentially have for the many people involved directly and indirectly.” The Association of American Universities (AAU) has created an FAQ about indirect costs and why they are important
The University is analyzing the overall financial consequences at Pitt for now and in the future, and is working with other universities and national associations — such as AAU and the Association of Public and Land-grant Universities — “to understand the details of the cap and the availability of legal challenges.”
The Trump administration attempted in February to make the same indirect costs cut to grants from the National Institutes of Health, but the action was immediately blocked by a temporary injunction that became permanent in April.
Pitt is part of a new, national group called the Joint Associations Group (JAG) on Indirect Costs that is developing a new indirect cost funding model. This group is composed of individuals from AAU, APLU, the Association of American Medical Colleges (AAMC), American Council on Education (ACE) and other organizations.
“The new model will be shared with the federal government as a potential mechanism to fund these important infrastructure costs, and we will keep you updated on the group’s progress,” the email said.
In addition, Nature reported that NSF staff members were told on April 30 to “stop awarding all funding actions until further notice,” according to an email seen by Nature.
The policy prevents the NSF from awarding new research grants and from supplying allotted funds for existing grants, such as those that receive yearly increments of money. The email does not provide a reason for the freeze and says that it will last “until further notice.”
Susan Jones is editor of the University Times. Reach her at suejones@pitt.edu or 724-244-4042.
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