Understanding Research Overhead

Facilities and administrative (F&A) costs include a range of indirect expenses—from janitorial and support staff to utilities and computing to workplace safety compliance and service contracts for high-end research equipment—that are not directly covered by research grants. "The risk of reducing F&A support is real and has the potential to damage America’s future. Investing in science is investing in our future—it’s good for people’s health, for our quality of life, and for the economy," warns the Council on Government Relations.

Watch a video or read a factsheet describing what F&A reimbursements (also known as indirect costs or overhead) are, how they are determined, and why they are important.

Reducing federal F&A reimbursement would have a disasterous impact on research institutions' ability to foster technologial innovation, advance medical discoveries, sustain a dynamic American economy, and protect our national security, COGR maintains. The reimbursement process is efficient, based on acutal research costs, and already partially funded buy universities. In fiscal 2023 universities contributed $28 billion of their own institutional funds to support research, including $6.8 billion for the federal share of F&A costs that wasn't reimbursed.

An association of research universities (including 42 ARCS partner institutions), affiliated medical centers, and independent research institutes, COGR is the national authority on federal policies and regulations affecting U.S. research institutions. 

Council on Competitiveness

The reduction "will negatively impact ongoing, critical life sciences and medical research at a time when competitors, especially China, are looking for any advantage to seize the lead in the global innovation race, and to dominate critical exponential technologies from AI to the biosciences." Read the complete statement

ARCS Foundation is a member of the council, which unites leaders from academia, business, labor, and the national labs, in a nonpartisan effort to lead the global economy, strengthen the innovation infrastructure, and raise the standard of living for all Americans.

American Association of Universities

"A cut to F&A reimbursements for NIH grants is quite simply a cut to the life-saving medical research that helps countless American families.” Read AAU President Barbara Snyder's complete statement

27 ARCS partner universities are members of AAU.

Association of Public Land Grant Universities

"This action will slow advances for millions of patients who desperately need critical breakthroughs and imperil the U.S. position as the world leader in biomedical innovation." Read APLU President Mark Becker's complee statement

27 ARCS partner universities are members of APLU.

NOTE: AAU and APLU joined with the American Council on Education in legal action contesting NIH cuts to F&A. Read more