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Federal Updates

With the transition to a new federal administration, we are seeing a steady stream of evolving news and policy updates, many of which require careful evaluation. We understand that these developments are raising questions and concerns across the University of California community and may be affecting the ability to maintain normal business and studies

As always, UC remains committed to supporting students, faculty, staff and patients by providing accurate information, thorough guidance and access to key resources.

Across the UC system, teams are working diligently to assess how executive orders and other federal actions may impact the University, including research funding, student aid, DEI efforts, healthcare services and more.

To support these resources, UC has developed a resource hub on federal updates that includes a dashboard of executive actions, key messages and support resources, including for undocumented members of the UC community. This site will be regularly updated as new information becomes available and we gain clarity on potential impacts.

Information for Researchers

The White House Executive Orders and their implementation by various federal agencies have impacted UC San Diego’s research portfolio in several specific ways. The Office of Research and Innovation, UC San Diego’s federal relations team, and senior leaders are working to stay abreast of developments to shape the university’s response and provide guidance to campus and to individual researchers whose federally funded research has been specifically impacted by stop-work orders.

  • The Executive Orders are issued to federal agencies and not to campuses. Federal agencies will act on the executive orders and issue guidance to grantees. Before we can assess the impact, UC San Diego needs specific information regarding the types of work being affected, and budgetary implications of any agency guidance.
  • Different agencies have responded differently, which means that UC San Diego’s implementation needs to be situational and flexible.
  • Standard processes to promote federally funded research have been interrupted.

Provisional recommendations for researchers

  • Absent specific communication from an agency about a particular federal award or subaward, researchers are advised to continue business as usual.
  • If any researcher receives Agency communication about a specific federal grant related to the Executive Orders, please forward it to vcresearch@ucsd.edu so the Office of Research and Innovation can activate internal process to assess the impacts and advise the researcher and their academic unit.
  • Continue to submit proposals. Check the Notice of Funding Opportunity on grants.gov often for amendments.

FAQs regarding National Institutes of Health cap on Facilities and Administration cost recovery

What are Facilities and Administration Costs?

Facilities and Administration (F&A) costs – also known as Indirect Cost recovery (IDC) – is a reimbursement for research-related costs incurred by an institution.F&A costs are negotiated by each university with the federal government, following a detailed audit of actual expenses.

F&A consists of:

  • Administrative Costs (capped at 26%), which include personnel and systems which support grant management, safety, and other activities central to the research ecosystem.
  • Facilities Costs (negotiated per campus), which include utilities, maintenance, equipment, and other research-related costs.

UC San Diego’s current F&A rate is 59%, far below the actual cost incurred when conducting research.

F&A recovery is not applied to all direct costs, and some grants (e.g., training grants, 8%-12%) have lower rates.

What changed with F&A rates?

On Friday, Feb. 7, the NIH issued a notice limiting F&A to 15% of all active and future awards. We are assessing the financial impact and developing response strategies.

Does this apply to only NIH grants, contracts, and cooperative agreements?

It is not yet clear, although many organizations think this applies to only grants - not contracts or cooperative agreements.

I have an upcoming NIH Grant Proposal, what should I do?

If you are a PI or Fund Manager preparing an NIH proposal for submission this week, contact your SPO officer for guidance about budget preparation.

If you are a PI or Fund Manager preparing an NIH proposal for submission after February 15th, continue to prepare your proposal, and wait for additional guidance about budget construction.

How is this going to impact NIH awards?

We are continuing to assess the impact of a 15% F&A rate on NIH awards, and will stay in communication with PIs and Fund Managers as we learn more

How will the 15% IDC rate on awards affect the draw down of expenses from NIH?

The NIH’s February 7, 2025, supplemental guidance states: “This policy shall be applied to all current grants for go forward expenses from February 10, 2025, forward as well as for all new grants issued.” For expenses incurred before February 10, 2025, they can be submitted with your negotiated indirect cost rate. For expenses incurred on or after February 10, 2025, we recommend that campuses temporarily wait to draw down expenses pending further guidance. (Source: UCOP)

Official Statements