Internal ORED Message Regarding NIH Funding

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February 10, 2025
Dear Research Community,
By now, you are likely aware of the recent directive from the National Institutes of Health (NIH) limiting both existing and new grantees to a maximum Indirect Cost (IDC) reimbursement rate of 15%. Also referred to as Facilities & Administrative (F&A) costs, this cap applies to all recipients of current NIH federal funding, including universities, medical centers and private biomedical entities.
This abrupt policy change has caught many by surprise. However, we want to reassure you that the leadership of the University of California, including UC Merced, along with partners and impacted institutions across the national higher education landscape, are actively developing and implementing strategies to respond. We will continue to keep you informed with factual and relevant updates as progress unfolds. Should you have any questions, please reach out to the Sponsored Projects Office or attend our office hours as listed below this message. Please refer all media inquiries to PR Director Sam Yniguez
For decades, NIH funding has empowered top research institutions like the University of California to discover new technologies that address environmental crises and provide new avenues for economic growth, and life-saving treatments for cancer, diabetes, heart attacks and strokes. New administration guidance threatens this support and jeopardizes America's research preeminence. The University of California is working hard to ensure our representatives and legislators understand that undermining this support would devastate research, stall breakthroughs and cost jobs. 
Locally, we encourage you to remain focused on your research, mentor your graduate students, and continue preparing proposals for submission. While challenges will arise, we will work together to mitigate their impact on our campus as much as possible. As a research university, we remain committed to discovery, excellence and impact.
Thank you for your dedication and resilience during this challenging time.
Gillian Wilson
Vice Chancellor for Research, Innovation and Economic Development
Professor, Department of Physics 
University of California Merced
 

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