NSF Indirect Cost (F&A) Rate Cap

Please visit our dedicated page on Federal Executive Orders, which includes FAQs Related to the NIH Funding Cap.

Dear Colleagues, 

This morning, the NSF published a notice that they would be implementing an Indirect Cost (F&A) Rate cap of 15% for all new awards effective May 5, 2025. NSF’s new policy does not apply to current awards.

As this is a rapidly evolving situation, ORI advises the research community to continue budgeting Drexel’s federally negotiated rates for NSF and all other federal proposals until further guidance is issued.

Importantly, include this caveat in your proposal budget justification: “Drexel University requests our current federally negotiated IDC rate, but we will accept the [INSERT FEDERAL AGENCY]’s approved rate at the time of award.”  

We will continue to update the community as more information becomes available.

Respectfully,

Aleister