On Friday, Feb. 7, the National Institutes of Health announced cuts to all indirect costs associated with NIH grants. Indirect costs cover facilities, administrative and staffing costs associated with research grants.
The cuts were set to be implemented Monday, until a coalition of 22 states, Michigan included, sued to challenge them. The states’ lawsuit said the effects of such cuts would be "immediate and devastating." Later Feb. 10, a federal judge temporarily blocked the cuts to NIH funding.
With these cuts, every existing and new grant issued by the NIH would be subject to a 15% indirect cost rate. MSU currently receives a 57% indirect cost rate for organized research.
If the cuts were to ultimately go through, the impact in loss of funds to MSU would be approximately $27 million, MSU spokesperson Amber McCann wrote in an email to The State News.
The announcement came as MSU continues to navigate various changes being made to federal policies under the Trump administration.
In a university-wide email on Feb. 10 — sent hours before the cuts were halted — MSU President Kevin Guskiewicz provided an update on MSU’s response to this indirect cost cap.
"This significantly impacts the important research happening in projects across many units and in turn impacts communities across our state and around the world," he wrote.
According to the email, "the Sponsored Programs Administration will be providing additional insight on the approach MSU will implement in the short-term with NIH projects."
The Sponsored Programs Administration supplies MSU researchers administrative support throughout the research award process. They provide resources for funding opportunities, as well as assistance with preparing and developing funding proposals, negotiating awards and managing awards after they are received.
Guskiewicz said communication could take time, as MSU’s Rapid Response Teams and university leaders consider the federal actions and respond accordingly.
"Given the pace, volume and extent of changes, combined with related lawsuits, injunctions and in some cases reversals of earlier actions, our teams will need time to review information and consult with industry partners and our representatives in Washington, D.C." Guskiewicz wrote.
Wrapping up his statement, Guskiewicz assured the community that MSU will "continue to uphold the mission of this public land-grant institution, the dignity and worth of all Spartans, and the commitment to foster an inclusive environment that supports world-class education; innovation and discovery; and service to our society."
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