Federal proposals to cap indirect cost rates threaten the research infrastructure that makes public access to scholarship possible. SPARC is working with Congress, agencies and our community to ensure any changes to indirect cost policy are developed collaboratively and implemented with adequate transition time.
What’s Happening
Recent proposals from the federal government would cap indirect cost rates—also known as facilities and administration (F&A) rates—for university research grants at 15%. These rates currently average around 50% at research universities and fund critical infrastructure that enables federally funded research to be conducted, disseminated, and preserved for public benefit.
A 15% cap would represent a significant and meaningful reduction in indirect cost recovery, with cascading effects throughout research institutions. This includes the library resources, digital repositories, research administration systems, and compliance infrastructure that ensure public access to federally funded research.
Why SPARC Cares
Indirect costs fund the infrastructure that makes open scholarship possible. They support:
- Library resources and services that provide researchers with access to essential information and support systematic literature reviews, data management, and specialized research needs
- Digital repositories that ensure public access to research findings and preserve the scholarly record
- Compliance infrastructure that enables institutions to meet federal public access mandates for publications and data
- Research administration offices that manage grants, ensure proper stewardship of federal funds, and support investigators throughout the research lifecycle
Libraries represent approximately 2% of an institution’s negotiated indirect cost rate—which can translate to millions of dollars annually supporting research infrastructure. Even libraries that don’t receive indirect funds directly depend on the institutional stability that adequate cost recovery provides.
Arbitrary or sudden changes to indirect cost rates without adequate planning and institutional input would destabilize university budgets, disrupt ongoing research programs, and undermine the infrastructure necessary to ensure taxpayer-funded research remains publicly accessible.
SPARC’s Position
SPARC supports stable indirect cost policy that:
- Recognizes the essential role of research support infrastructure, including libraries, digital repositories, and compliance systems
- Prevents unilateral administrative changes that could disrupt research infrastructure without adequate transition time
- Requires formal collaboration between federal agencies and the research community in developing any new indirect cost models
- Ensures adequate implementation planning that gives institutions time to adjust and protects ongoing research programs
Any changes to indirect cost policy should occur through a deliberative process with meaningful stakeholder input, not through sudden administrative action.
What SPARC Is Doing
SPARC is actively engaging with Congress to protect research infrastructure through stable indirect cost policy. Multiple appropriations bills for FY2026 include provisions addressing indirect costs, and we are advocating for protective language that prevents unilateral administrative changes while supporting collaborative development of any new models.
Congressional Action Across Multiple Bills
Congress has responded to proposed indirect cost caps by including protective language in several FY2026 appropriations bills and the National Defense Authorization Act. While specific approaches vary, these provisions share common themes:
- Maintaining current negotiated rates – Requiring agencies to continue applying negotiated indirect cost rates as they were in FY2024 or similar baseline periods
- Prohibiting unilateral changes – Preventing agencies from developing or implementing modifications to indirect cost provisions without congressional authorization
- Supporting collaborative solutions – Encouraging agencies to work with the research community to develop optimized approaches
Read our letter to the Labor-HHS-Education Appropriations Committee
National Defense Authorization Act
We advocated for the inclusion of Section 226 from the Senate-passed National Defense Authorization Act in the final conference report. This provision prohibits the Department of Defense from making unilateral changes to indirect cost rates until DoD develops an alternative model in formal collaboration with the research community and establishes a comprehensive implementation plan. The relevant language was included as Section 230 in the final passage of the bill on December 10th, 2025.
Read our letter to the Armed Services Committees
Resources
- Understanding the FAIR Model – Information about proposed restructuring of federal research cost reimbursement
How You Can Help
If you work at a college or university:
- Connect with your government affairs office to ensure library infrastructure is represented in institutional advocacy efforts
- Provide concrete examples of how indirect cost funding supports research infrastructure, federal compliance, and public access at your institution
- Share data about the services and resources that indirect costs fund, particularly those that support federally funded research
Organizations and individuals can also contact their members of Congress to express support for stable indirect cost policy that protects research infrastructure.
Questions?
For more information about SPARC’s work on indirect cost policy, contact:
Corinna Turbes
Senior Manager, Government Affairs
[email protected]
Last updated: December 2025