April 14, 2025

• OVPR was notified on Friday (April 11) that the Department of Energy (DOE) intends to cap F&A cost recovery rates for DOE awards at 15%. Although DOE awards represent a small portion of Temple's funding portfolio, a number of grants could be affected if this policy holds. On Monday (April 13), it was announced that a consortium of APLU, AAU, and ACE is filing suit against DOE, and Temple is a member of APLU. We will continue to monitor progress, engage with APLU leadership and membership, and share any developments.

April 4, 2025

• To date, only a relatively small number of terminations or stop-work orders have been issued for Temple projects. However, the number is expected to increase over time, potentially leading to further reductions or losses in federal funding. If you receive a termination or a stop-work order, immediately halt all project activities as specified in the notice and notify Josh Gladden, Vice President for Research, at jgladden@temple.edu, and Dennis Paffrath, Associate Vice President for Research Administration, at dennis.paffrath@temple.edu. You will also receive an email from OVPR, Research Administration, with information about the termination or stop work order and what the next steps should/will be. Please refer to the Stop-Work Orders, Terminations, and Suspensions section for more information.

February 27, 2025

• OVPR is aware of an Executive Order posted on February 26, 2025. OVPR, Counsels Office, and others have been, and will continue to, analyze and interpret impacts on our research enterprise as well as monitor agency reactions and implementations. We will post more as things become more clear.

February 17, 2025

• Material transfers with NIH are no longer paused and are currently moving forward.

February 11, 2025

• OVPR is aware of the temporary restraining order blocking the new NIH indirect cost rate cap as outlined in NIH Notice NOT-OD-25-068. All original guidance in the Indirect Cost Rates for National Institutes of Health (NIH) Proposals and Awards section on this page remains in effect.

February 10, 2025

• Indirect Cost Rates for National Institutes of Health (NIH) Proposals and Awards 

February 9, 2025

• Recent Announcement Capping Facilities and Administrative Cost Recovery from NIH [Memo] 

January 31, 2025

• OVPR Town Hall on 2025 Federal Funding Guidance [Webinar Recording] 

January 30, 2025

• OVPR Town Hall (1/31) on 2025 Federal Funding Guidance 

January 28, 2025

• OMB Memo of January 27, 2025 [Memo] 

January 24, 2025

• Recent HHS and NIH Directives [Memo] 

When preparing your proposals, we recommend: 

•  Double-checking deadlines to confirm they have not been updated. 
• Verifying that funding announcements remain unchanged and have not been revised or postponed. 
• Signing up for alerts from federal agencies or sponsors to stay informed about any modifications. 

Key Points to Keep in Mind

Use the appropriate NICRA in Proposals. Our institution’s current NICRA are: 

• 58.5% (26% off campus) for Organized Research Activities.
• 39.40% (26% off campus) for Other Sponsored Activities.
• 58.40% (26% off campus) for Instruction.

The above should be applied to all proposals unless otherwise specified by the Funding Opportunity. 

The following must be inserted into the budget justification for all NIH proposals:

Budget justification – Indirect Cost Rate

Our institution has a Negotiated Indirect Cost Rate (NICRA) of 58.5% for federally sponsored research, as established with our cognizant agency. This rate has been applied in our budget calculations for this proposal. However, we fully acknowledge the guidance outlined in NIH Notice NOT-OD-25-068, which states that for certain awards, NIH may impose a restricted indirect cost rate of 15% of total direct costs. If this proposal is awarded under a funding mechanism subject to this limitation, we understand that NIH will adjust the indirect cost rate accordingly. We are committed to complying with NIH policies and will align our budget to the applicable indirect cost rate as determined at the time of award.

NIH May Apply a Reduced Indirect Cost Rate on Certain Awards

• NIH Notice NOT-OD-25-068: NIH may limit indirect costs to 15% of total direct costs for specific funding mechanisms.
• Award Adjustments: If an award falls under this restriction, NIH will adjust the indirect cost rate at the time of award—even if the full NICRA was included in the proposal.

What This Means for PIs and Department Staff:

• Proposal Stage: Budget proposals should use the appropriate rate for the proposal activity (as shown above), unless the funding opportunity announcement (FOA) specifies a lower rate.  Insert the additional budget justification statement as noted above.
• Award Stage: If NIH imposes the 15% cap, the total award amount may be adjusted accordingly.
• Pre Award Consultation: If you are unsure about the applicable indirect cost rate, contact your assigned PreAward Specialist in the Research Administration Office for guidance before submission.

• It is critical to respond promptly to ensure compliance with new terms, as noncompliance could jeopardize funding.
• Please also share these updates with us through the OVPR Federal Communications Portal.
•  For compliance-related assistance, contact: 
  • Research Security/Export Control: [click-for-email]
  • IRB: [click-for-email]
  • IACUC: [click-for-email]
  • COI: coitemple@temple.edu 

If you receive new instructions, act swiftly to ensure compliance. Contact your OVPR Grants Administrator if you require assistance.  

• Review the terms of your Notice of Award/Award Agreement, particularly clauses related to funding availability and reimbursement. Contact your OVPR Grants Administrator if you need help locating your agreement. 
• Monitor your obligated budget balances closely to avoid deficits while awaiting future obligations, as funding is not guaranteed until confirmed.
• Communicate with your Program Officer to confirm there are no changes to your award’s terms or conditions. Remember to file and save all relevant communications regarding each award.
• Submit any overdue technical reports or deliverables as a priority.
• Watch for policy updates from the federal agency overseeing your grant for any changes to funding or compliance requirements.

Keep detailed documentation of all communications with sponsors and agencies to ensure transparency and compliance.

• Immediately halt all project activities as specified in the notice.
• Notify your assigned Pre Award staff, who will then work with Post Award to ensure compliance and proper documentation.
• Review the terms of the stop-work order or termination notice carefully.
• Submit any required final reports or deliverables promptly.
• Avoid incurring any additional expenses unless explicitly authorized.
• Closely monitor obligated budget balances to avoid deficits while awaiting future obligations. Anticipated future funding remains subject to availability of funds and should not be considered guaranteed.
  • When an award is signed, the federal agency allocates a portion of the total approved budget as obligated funds. Temple as the recipient can incur expenses up to the obligated amount and these expenses will be reimbursed.* Any expenses incurred within the scope of the award and covered by obligated funds will be reimbursed. Future expenses beyond the current obligation will not be reimbursed.
  • The same principles apply to subawards. When an award is signed, the federal agency allocates a portion of the total approved budget as obligated funds. Temple, as the recipient, can authorize subawardees to incur expenses up to the obligated amount, and these expenses will be reimbursed*. Any expenses incurred by subawardees within the scope of the subaward and covered by obligated funds will be reimbursed.* However, future expenses beyond the current obligation will not be reimbursed unless additional funds are formally obligated.
    * Note for stop-work orders: Only costs through the date of receipt of the notice are typically reimbursable.

Please reach out to Theodore McIntosh ([click-for-email]) if you have a material transfer agreement that may be impacted by this pause.

Josh Gladden 
Vice President for Research 
[click-for-email] 

Dennis Paffrath 
Associate Vice President for Research Administration 
[click-for-email]

Josh Gladden 
Vice President for Research 
[click-for-email] 

Dennis Paffrath 
Associate Vice President for Research Administration 
[click-for-email]

Maria Palazuelos Jorganes 
Associate Vice President for Research Compliance
[click-for-email]