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DOD Limits Indirect Costs Reimbursement to IHEs

Agency Joins Three Other Federal Research Funders in Efforts to Cap Indirect Costs

Darla M. Fera

May 19, 2025 at 13:26:07 ET

In a memorandum posted May 14 and effective immediately, the Department of Defense (DOD) announced that it would “pursue a lower cap on indirect cost rates for all new financial assistance awards” to institutions of higher education (IHEs). DOD said the change “position[s] the DOD to save up to $900M per year on a go-forward basis.” In issuing this notice, DOD joins the National In... Read More

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DOD Limits Indirect Costs Reimbursement to IHEs

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