Dear Colleagues,

On Friday evening, February 7 we sent a communication regarding the NIH releasing supplemental guidance to the NIH Grants Policy Statement imposing a standard facilities & administrative (F&A) costs (also known as indirect costs) rate of 15% for all NIH grantee institutions. This 15% rate would replace individually negotiated rates for an institution and apply to both existing grants and future grants starting February 10, 2025.

Since then, campus CFO’s and our legal team have worked together on the impact of this guidance to our campuses should it be implemented. The system wide impact is just over $85m annually. The fundamental importance of these funds helps support the physical and operational backbone of scientific discovery. The funds help us maintain laboratories, secure data and cover the daily operations of critical research infrastructure--ultimately helping to save lives. We are sending this information to you now because it will be shared with the press and become public as soon as Monday, February 10.

These issues are rapidly evolving, and we are actively collaborating with the Colorado congressional delegation, as well as other universities and the national higher education and biomedical research associations, including AAU, APLU, AAMC, ACE, and COGR have issued statements condemning the policy.

We recognize the uncertainty and worry our campus communities are experiencing, including some direct impacts on projects and programs. In these times, it’s critical to keep our eye on the ball. Please know we are here for you, and we are working closely with the President, Chancellors, and our legal team on this issue. We continue to encourage you to contact your campus leadership with questions. Please visit the CU System Federal Transitions Update page for up-to-date communications and federal memos.  

Jeremy Hueth, Vice President, University Counsel  

Danielle Radovich Piper, Sr. VP External Relations and Strategy