Credit: This content was originally published by Jameson & Company CPAs. Read the full article in their Federal Funding Briefing – April 2025.
Proposed Legislation to Help Stabilize R&D Funding. And Why It Matters.
The American Innovation Act, a bicameral bill that would ensure annual budget increases of five percent for critical research at DOE, NSF, NIST, DOD, and NASA, was reintroduced in April. Details here.
Recently published data from the Organization for Economic Cooperation and Development’s Main Science and Technology Indicators show that U.S. growth in gross domestic expenditures on R&D (GERD) is slowing, while China’s has remained relatively high and stable. Read the article.
The Ever-Changing World of Federal Grants and Contracts
There’s a lot going on in government funding right now, from new guidance and potential changes to the FAR to cuts in indirect cost rates and contracts, as well as legal challenges. Here’s what we shared in April:
Guidance and Changes to Terms and Conditions
- Grant recipients are responsible for overseeing their subawards. Federal agencies must ensure that they are effectively doing so. Recent guidance from the OMB will enhance oversight. Read the guidance.
- NIH announced changes to terms and conditions governing federal funding, applicable to NIH grants, cooperative, and other awards, including future awards. Details here.
- New Guidance on Salary Limitation for Grants and Cooperative Agreements FY 2025 is here.
Changes to the FAR
- Executive Order 14275, “Restoring Common Sense to Federal Acquisition Regulation (FAR), will lead to substantial streamlining. Learn what’s under review, what may change, and what it could mean.
- A second EO also calls for the prioritization of commercially available products and services as required by FASA (1994). Read the article.
Indirect Cost Rate Challenges and Grant Termination
- As expected, the administration will appeal the permanent injunction on NIH cuts to indirect funding. Details here.
- The government cut indirect rates for DOE funds to 15%. Details here. A judge promptly blocked it. Details here.
- If your federal grant is terminated by the government, here’s what you need to know.
- The government wants to align NIH indirect cost rates with those provided by foundations. JAMA doesn’t think that’s healthy. Read the article.
Jameson & Company has been watching the indirect cost rate issue closely and has published a new blog on the subject. In it, we discuss the 15% indirect rate cap, how it will impact the way NIH grants are awarded, and three possible accounting solutions.
Credit: This content was originally published by Jameson & Company CPAs. Read the full article in their Federal Funding Briefing – April 2025.
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