The Hidden Costs of Research: Lessons from NIH Overhead Funding

by Jon Scaccia December 9, 2024

This 2014 Nature article explores the complexities of indirect costs in NIH research funding, highlighting how institutions must negotiate reimbursement rates for essential but often overlooked expenses like administration, facilities maintenance, and utilities.

While direct research funding captures attention, the “less sexy” infrastructure costs are vital for sustaining cutting-edge science. Due to federal caps and restrictions, institutions often receive less than their negotiated rates, fueling tensions between researchers and administrators.

Honestly, this has been my experience as well. I’ve been involved in multiple proposals where the indirect cost creeps up to and beyond 50%. That seems bonkers to me, but I have never had the scale to require that much overhead.

Despite its age, this piece remains relevant as universities and non-profits navigate tight budgets, increasing regulations, and the rising cost of maintaining facilities and supporting research careers. It also sheds light on ongoing debates about transparency, fairness, and the balance between funding direct research and the infrastructure that enables it.

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