Ten national organizations — including the Association of American Medical Colleges — have teamed up to develop a new funding model for indirect costs related to medical research, which they plan to submit to the federal government.
“Despite the historical success of the current [facilities and administrative] cost reimbursement model, it is not without limitations that unnecessarily complicate the indirect costs structure, lead to confusion and misunderstanding, and increase administrative burdens,” the organizations said in a joint news release. “The effort announced today seeks to identify and reduce or eliminate regulatory barriers, produce a simple and easily explained model, and increase transparency, all in service of a singular goal: to ensure that taxpayer dollars continue to be used effectively to advance research that benefits all Americans.”
The initiative comes amid ongoing uncertainty over the future of federal funding for medical research. In February, the National Institutes of Health proposed capping reimbursements for indirect costs — which cover expenses like lab space, utilities and administrative support — at 15%. Research institutes have warned that the proposal would reduce access to clinical trials and stall scientific progress. A federal judge has issued a permanent injunction to block the cap, which the Trump administration said it plans to appeal.
The effort to design an alternative model for indirect cost reimbursement is being led by the Association of American Universities, the Association of Public and Land-Grant Universities, the Association of American Medical Colleges, the American Council on Education, the Association of Independent Research Institutes, the Council on Governmental Relations, the National Association of Independent Colleges and Universities, the American Association of State Colleges and Universities, the Science Philanthropy Alliance, and the National Association of College and University Business Officers.
