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Could the US get any more stupid?…..don’t answer that. Apparently yes…
Other side of the rationale:
• Increased Funding for Research: NIH claims that capping indirect costs at 15% could save over $4 billion annually, allowing more funds to be directed toward new research projects.
• Comparison with Private Foundations: Private organizations like the Gates Foundation and Robert Wood Johnson Foundation cap indirect costs at 10-12%. NIH argues that its policy aligns with these practices, emphasizing efficiency and maximizing research output.
• Simplified Cost Structures: Standardizing indirect cost rates eliminates the need for institution-specific negotiations, which can vary widely (e.g., Harvard’s rate is 69%).