May 2, 2025
NSF Policy Notice: Implementation of Standard 15% Indirect Cost Rate
Effective May 5, 2025. All new NSF financial assistance awards and subawards. The U.S. National Science Foundation (NSF) is updating its policy regarding the reimbursement of indirect costs in federally funded financial assistance.
Implementation
- NSF funding opportunities issued after May 5, 2025, will include notice of this indirect cost rate policy to ensure public awareness.
- The 15% rate maximum applies only to new awards made to IHEs on or after May 5, 2025.
- Recipients must use a rate no greater than 15% of modified total direct costs (MTDC), as defined in 2 CFR 200.1.
- This policy does not apply retroactively to existing awards.
- Institutions are not required to amend budgets for awards issued before this effective date, nor will they be required to return previously reimbursed indirect costs.
- Award supplements that are effectuated via amendments to awards in existence prior to May 5, 2025, are not subject to this policy.
- Continuing grant increments are awarded under the original award terms and conditions; continuing grant awards in existence prior to May 5, 2025, are not subject to this policy.
May 2, 2025
The NIH has updated its policy on foreign subawards, as detailed in Notice NOT-OD-25-104, released on May 1, 2025. This change aims to enhance transparency and national security in NIH-funded research involving foreign collaborations.
Key Points:
- New Award Structure: NIH will implement a structure where foreign subawards are issued as independent awards linked to the primary grant. This allows NIH to track funds individually while the primary institution reports scientific progress collectively.
- Implementation Timeline: The new structure is expected to be in place by September 30, 2025, before Fiscal Year 2026.
- Applicability: The policy applies prospectively to all NIH grants and cooperative agreements (new, renewal, and non-competing continuation) to domestic and foreign entities. Existing awards will not be retroactively revised.(Grants.gov)
- Restrictions: Effective immediately, NIH will not issue awards that include subawards to foreign entities. Prior approval requests to add new foreign components or subawards to ongoing projects will also not be accepted.
- Exceptions: The policy does not apply to funds provided to support foreign consultants or the purchase of unique equipment or supplies from foreign vendors.
- Future Plans: NIH intends to expand this policy to domestic subawards for consistency.(Grants.gov)
For more details, refer to the full notice: https://grants.nih.gov/grants/guide/notice-files/NOT-OD-25-104.html
March 12, 2025
Message from Dr. Sethuraman Panchanathan, Director, U.S. National Science Foundation.
“…NSF staff continue to work around the clock, even under great stress and uncertainty, to do the hard work that is necessary. They do so because they understand that NSF’s mission is incredibly important to our economic and national security. However, it is equally important that everyone who plays a role in the research enterprise also does their part to communicate broadly the value and impact of America’s scientific enterprise and what it makes possible for individuals, communities, our states, and the nation.”
NSF Implementation of Recent Executive Orders – official website
- New FAQs answered from NSF – February 17, 2025
Please review the latest FAQs from the NSF. -
Access to the Award Cash Management Service (ACM$) – February 2, 2025
Access to the Award Cash Management Service (ACM$) has been restored and the system is available to accept payment requests as of 12:00 PM ET on February 2, 2025. See the FAQs for more information. You can direct your questions through this webform. We are receiving a large volume of submissions, and we will not be able to respond individually. As we collect your questions, we will compile and post frequently asked questions (FAQs) on this page. Please check back regularly to access these FAQs. Thank you for your work advancing science, engineering, technology and innovation for our nation. -
The NSF has paused all review panels – January 28, 2025
The NSF has paused all review panels, new awards, and payments under open awards to comply with OMB Memorandum M-25-13, which mandates a review of financial assistance programs in light of recent executive orders. NSF grantees must cease all non-compliant activities, particularly those involving DEIA principles. Updates and further guidance will be provided through an executive order implementation webpage. Grantees should work with their institutional research offices to ensure compliance and direct questions through the provided webform.