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February 10, 2025

UConn warns Trump admin. policy change threatens federal research funding

Hartford Business Journal The University of Connecticut
By Andrew Larson

Colleges and universities could lose millions of dollars in federal funding under a major change announced by National Institutes of Health (NIH).

On Friday, NIH announced that it would reduce the rate at which higher education institutions can recover the indirect costs of grant-funded research. The change is set to go into effect Monday and affects all current and future grants.

Previously, UConn and UConn Health received a reimbursement rate of 61% and 66.5%, respectively, for indirect costs. NIH is reducing that rate to a flat 15%.

Indirect costs include overhead, such as depreciation of buildings, labs and research equipment, as well as administrative costs for support staff, utilities, legal and accounting services, and office supplies and equipment.

UConn officials said the lower recovery rate means the school must bear more costs itself, and/or reduce its research. 

UConn President Radenka Maric, Provost Anne D’Alleva, UConn Health CEO Dr. Andy Agwunobi and Vice President for Research Pamir Alpay issued a statement saying the change will “impair our ability to produce innovative research that benefits all parts of society, and place a significant financial strain on the university.”

“We are not alone in this impact, as this funding change will similarly affect most research-active institutions of higher education across the country,” they said.

About 85% of UConn’s external revenue for research, training and public service comes from federal funding sources, including NIH, the school said.

NIH, the largest biomedical research institution in the world, provides funding for research aimed at improving health, preventing diseases, and developing treatments and cures for a multitude of conditions.

According to NIH, the new indirect cost recovery rate “will allow grant recipients a reasonable and realistic recovery of indirect costs while helping NIH ensure that grant funds are, to the maximum extent possible, spent on furthering its mission.”

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