Energy Department Lowers University Overhead on Research Grants to 15%

Speedy summary:

• The U.S. Department of Energy (DOE) has imposed a cap on “indirect” cost rates for university research grants at 15%.
• This move parallels a similar cap previously attempted by the National Institutes of Health (NIH), which was later ruled illegal.
• Indirect costs cover expenses like administrative support, facility maintenance, and utilities that are essential for conducting research.

Indian Opinion Analysis:
The DOE’s decision to limit indirect costs in research funding could have broader implications globally, including India. Indian universities and researchers frequently collaborate with international institutions on energy and technological projects. A potential reduction in available resources might impact collaborative ventures, notably where shared funding models rely on external budgets to maintain infrastructure and administration support. While this policy targets U.S.-based entities directly, such restrictions indicate tighter financial oversight trends that could indirectly shape global academic partnerships moving forward.

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