Response to Proposed NSF Cap

To: The Caltech Community
From: Thomas F. Rosenbaum, President; David A. Tirrell, Provost

On Friday, May 2, the National Science Foundation announced a new policy to cap at 15% the indirect cost rate on all newly awarded academic grants. The action follows previous attempts this year to change unilaterally the audited reimbursement rates set annually with federal agencies, including the National Institutes of Health (NIH) and the Department of Energy (DOE). These reimbursement rates, commonly referred to as Facilities and Administrative (F&A) rates, cover real costs and investments that universities make in the physical infrastructure and support services required to conduct federally funded research.

In response to the NSF's action, Caltech on Monday joined the Association of American Universities (AAU), the American Council on Education (ACE), the Association of Public and Land Grant Universities (APLU), and 12 research universities in filing in federal court a lawsuit that seeks to prevent the NSF from imposing the 15% cap. The suit, which has been filed in the United States District Court for the District of Massachusetts, makes clear that if the policy is allowed to stand, it will "undermine scientific research at America's universities and erode our Nation's enviable status as a global leader in scientific research and innovation."

A full account of Monday's filing is available on the AAU website.

We will continue to keep you informed of developments related to this matter, or any other actions taken by Caltech to safeguard its mission to advance forefront research, discovery, and education for the benefit of society.