This approach to suddenly cutting
@NIH grant indirect costs will cause chaos and harm biomedical research and researchers in hospitals, schools and institutes nationwide. A sane government would never do this.
Last year, $9B of the $35B that the National Institutes of Health (NIH) granted for research was used for administrative overhead, what is known as “indirect costs.” Today, NIH lowered the maximum indirect cost rate research institutions can charge the government to 15%, above what many major foundations allow and much lower than the 60% that some institutions charge the government today. This change will save more than $4B a year effective immediately.