[Research] Agency Updates re: Implementation of IDC Rate Cap

[Cynthia J. Johnson]

*~~ Please disseminate this information with those researchers and research
administrators in your department who may find it noteworthy ~~*





*AGENCY NEWS*



*Some Federal Agencies Have Halted Their Plans To Cap Indirect Cost Rates*



The National Institutes of Health and other federal agencies can’t make any
changes to how universities are reimbursed for costs indirectly related to
research until at least Sept. 30, under the recently passed budget bills
that President Trump signed into law. READ MORE
<https://www.insidehighered.com/news/government/science-research-policy/2026/02/09/congress-courts-stymie-trumps-effort-cap>



*** UPDATED UC GUIDANCE ***



*NSF*: Continue to utilize the IDC rates currently approved in UCR’s
Federally Negotiated Indirect Cost Rate Agreement (NICRA) dated April 9,
2024, until further notice. Since NSF abandoned their appeal on January 23,
2026, the previously recommended disclaimer language is no longer necessary
to include in proposal submissions.



*Department of Energy*: Continue to utilize the IDC rates currently
approved in UCR’s NICRA dated April 9, 2024, until further notice. Since the
Department of Energy rescinded its previous Policy Flashes related to the
adjusting of indirect cost rates (see Policy Flash PF-2026-30
<https://www.energy.gov/management/pf-2026-30-indirect-cost-rates-policy-flashes-and-financial-assistance-letter-no-longer>),
it is no longer necessary to include the previously recommended disclaimer
language in proposal submission.



*Department of Defense*: Since the Federal government has not rescinded
their appeal, continue to submit proposals to DoD using the IDC rates
currently approved in UCR’s NICRA dated April 9, 2024, *and* include the
following “reservation of rights” language to explicitly reserve UCR’s
right to challenge retroactive application of the 15% rate:



*“We are submitting this application using the indirect cost rate as
stipulated in our federally negotiated rate agreement.  We note that as of
June 17, 2025, application of the 6/12/25 Department of Defense internal
Memorandum “Implementation of a 15% Indirect Cost Cap on Assistance Awards
to Institutions of Higher Education” is temporarily enjoined, in connection
with the Temporary Restraining Order (TRO) issued in connection with AAU v.
DoD (D. Mass., No. 25-cv-11740).  We therefore plan to draw down in
accordance with the University’s negotiated rate.  We reserve the right to
challenge the attempted retroactive application of the 15% IDC rate cap
memo should the TRO be lifted or should there be another court ruling
allowing implementation of the rate cap specified in the Memo.”  *



*NIH and other Federal Agencies not noted above*: Continue to utilize the
IDC rates currently approved in UCR’s Federally Negotiated Indirect Cost
Rate Agreement (NICRA) dated April 9, 2024, until further notice.





*Office Hours: Kuali Sponsored Programs*



Please join us for the Kuali Sponsored Programs Office Hours which meets on
the *first and third Thursday* of each month from 9 – 9:30 a.m. via the
following *new ZOOM link*:
https://ucr.zoom.us/j/91549349837?pwd=7acOMgGLk5bLVMXyHSPMSkHPTo0bhA.1&jst=2
.



*We hope to see you there!*


*_________________________________________________________________________________________________________________________________________________*




*Research List-Serv*

Do you know of someone in your department who is not currently registered
to receive newsletters (such as this one) from the Research listserv, but
would like to?  If so, please forward their name and email address to
Cynthia Johnson at cwells at ucr.edu.


*Calendar*

Campus Holiday Closure - The Office of Research and Economic Development
will be closed on Monday, February 16th, in observance of Presidents’ Day.
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