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Key Points:
- F&A costs are essential institutional expenses paid by universities that are required for research conducted by university faculty.
- Cutting federal support for F&A costs means fewer scientific breakthroughs.
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F&A costs, or “indirect costs” of research are essential to conducting research that saves lives. But what are F&A costs, really? F&A costs are the essential institutional costs required to support faculty led research projects. That includes things like specialized research lab space, heating, and maintenance costs. It also includes data storage, compliance with federal health and safety, environmental and research security regulations, and more. Currently the federal government pays for a large portion of these essential research costs. The rest of these costs are paid for by the universities. Reducing federal support for F&A costs means less research. It means fewer breakthroughs that make our nation healthier, safer, and more prosperous.
Much like investments in roads and bridges support your daily commute to work, F&A costs are the backbone that supports scientific research. Without government support for F&A costs, university research labs would go dark. In what areas have breakthroughs been made possible by government support these essential institutional research costs? Here are just a few:
- Effective cancer treatments & targeted therapies
- GPS technology
- Precision agriculture and new farming advancements
- Semiconductors/microelectronics
- Advance manufacturing techniques and new materials
Government support for F&A costs of research projects remains critical to supporting scientific breakthroughs. Without it, the incredible discoveries university research continues to yield wouldn’t be possible. Importantly, conducting research at universities remains a good deal for the government. Plus, studies show universities have lower "effective indirect cost rates" than hospitals and independent research institutes. That means universities are taking great care of dollars invested by the government in research.
More on F&A costs of research:
Responses to common questions about F&A costs of research.
The Joint Associations Group (JAG) on Indirect Costs released its recommendation to Congress and the executive branch for a new model to replace the current facilities and administrative (F&A) cost structure that the federal government uses to fund the indirect expenses that universities and other research organizations incur when conducting federally funded research on behalf of the American people.
The following resources pertain to all the legal filings submitted by AAU, ACE, and APLU in cases against the National Institutes of Health (NIH), National Science Foundation (NSF), and the Department of Energy (DOE) regarding cuts to critical research funding.
Facilities and administrative costs are necessary to America’s scientific enterprise, writes AAU President Barbara R. Snyder.
The federal government sponsors university research to help our country prosper.
This document outlines numerous key differences in private foundation accounting for F&A costs, including the increased flexibility afforded to foundations, and the differences in research focus.
This page is a hub for activities of the Joint Association Group (JAG) on Indirect Costs, and will provide links to resources outlining the group's progress as it develops a more efficient and transparent model for funding indirect costs on federal research grants.
Responses to common questions about F&A costs of research.
The Financial Accountability in Research (FAIR) model is a new approach to increase transparency, accountability, and clarity in how federal research funding is spent.
On June 30, 2025, Judge Allison D. Burroughs of the United States District Court for the District of Massachusetts granted a motion submitted by the government to convert the nationwide preliminary injunction issued on May 15, 2025 into a final judgment vacating the DOE Rate Cap Policy and its applicability to institutions of higher education nationwide. The government will have 60 days to appeal the decision and is expected to do so.
On June 20, 2025, Judge Indira Talwani of the United States District Court for the District of Massachusetts granted summary judgment in favor of AAU, APLU, ACE and 13 research universities.
On June 17, 2025, U.S. Judge Brian E. Murphy issued a temporary restraining order (TRO) that covers all institutions in all states nationwide in the case filed by AAU, APLU, ACE, and 12 impacted higher education institutions against the U.S. Department of Defense.