University of Kentucky President Eli Capilouto responded to the recent National Institutes of Health (NIH) indirect cost reimbursement change in a university-wide email.
On Friday, Feb. 7, the federal NIH announced the rate of indirect costs would be lowered to 15% for all existing and new NIH contract awards, according to the email.
According to the email, UK has received an annual average of $159 million in NIH awards as a major health research and clinical institution over the past five years.
The email said the awards fund research that looks at diseases and illnesses that most impact Kentucky such as cancer, heart disease, children’s health and opioid use disorder.
Indirect costs, also known as Facilities and Administration (F&A), are used to help pay for “items that make research possible,” like research equipment utilities and associated technology, according to the email.
The email said the indirect cost or rate would drop from a range of 20-54% to 15%. According to Capilouto, if the indirect cost change is enacted, it would impact how research is done at UK.
“It will cost UK tens of millions of dollars annually and will hit our local and state economies,” Capilouto said. “More important than any numbers, though, it will impact the work we do to advance the health of Kentucky in those areas most critical to our future.”
In the email, Capilouto said UK’s government relations team will be in Washington D.C. this week to meet with “our congressional delegation to communicate how fundamentally important and serious this issue is to our community.”
Capilouto also said the cabinet, deans and other university leaders are meeting regularly to “ensure we remain careful and prudent stewards of our resources.”
The federal policy landing page will also continue to be updated as more information comes in, according to Capilouto.
Capilouto said UK will continue to work towards the restoration of the indirect rate for federal grants as well as continue to comply with all federal and state laws and policies.
“We will do as we have always done. We will remain focused on our work. We will remain committed to telling our powerful and compelling story – a story about what we do to help and heal this state.”
