Feb. 11, 2025
Dear URI Faculty, Staff, and Students,
On Friday, the National Institutes of Health (NIH) announced a 15% cap on indirect cost rates for both new and existing grants. Indirect costs cover expenses that enable institutions to carry out federally funded research. The new rate would substantially reduce the funds universities across the nation, including URI, receive from the federal government to support critical research.
The administration also has issued a funding freeze on most U.S. Agency for International Development (USAID) programs. These actions have created significant uncertainty in the federal research funding landscape, and URI is actively involved in legal challenges and advocacy efforts to address them.
NIH Indirect Cost Rate Cap Paused by Federal Judge
On Monday, Rhode Island Attorney General Peter Neronha announced that the state joined 21 other states in a lawsuit challenging the NIH indirect cost reimbursement cut. And yesterday afternoon, a federal judge issued a temporary restraining order, prohibiting the NIH from enacting the rate change and preserving the right of institutions in the 22 states participating in the lawsuit to use their previously negotiated rate while the restraining order is in place.
URI Vice President for Research and Economic Development Bethany Jenkins submitted a declaration in support of the attorney general’s filing.
NSF Guidance Updated
The National Science Foundation has posted updated guidance regarding activities mentioned in the rescinded Memorandum M-25-13, including diversity, equity, and inclusion. The NSF guidance states, “Consistent with the district court’s order, NSF awardees may continue activities consistent with the current terms and conditions of their NSF awards at this time.”
Fund 110 Freeze
We want to make clear that we are committed to supporting our research enterprise and the remarkably talented members of our research community. The challenges and the current uncertainty, though, are real and do necessitate some immediate University actions.
Many of URI’s federal awards are largely cost reimbursable, which means the University is reimbursed by a funding agency for costs incurred during a project. If the federal government rescinds any awards against which URI has already spent or obligated funds, or continues to reduce allowable indirect costs, URI may need to cover those funds using University resources.
At URI, indirect cost revenues are accounted for in Fund 110. (This is separate from the University’s general operating fund.) Fund 110 will be the primary source of institutional funds used to address any unanticipated research shortfalls. In light of the uncertainty caused by the federal actions, we are instituting a freeze on any new spending of Fund 110 funds, effective immediately. Importantly, the freeze does not impact existing personnel funded by Fund 110, or prior documented commitments. This freeze is specific to Fund 110.
Research Office Information Sharing
As our leadership team assesses the recent and proposed federal actions, principal investigators (PIs) are asked to inform the Division of Research and Economic Development of official notifications from federal agencies, including stop-work or any other notices, at FederalFundingCommunications-group@uri.edu.
Researchers who have an NIH proposal due in the next 21 days should notify the Office of Sponsored Projects at FederalFundingCommunications-group@uri.edu, in addition to their OSP contact. The office is managing submissions on a case-by-case basis.
Leadership Team on Federal Actions
University leaders are actively engaging with key stakeholders in government, the private sector, and peer institutions to navigate this period of uncertainty and support our vital research efforts and the talented individuals driving them.
As shared last week, a Leadership Team on Federal Actions is meeting regularly to track federal developments and coordinate activities across the University, and a new Federal Actions Updates webpage is available at uri.edu/federal-actions/.
URI remains committed to our strategic priority to improve the quality of life across our state and nation. The research and ideas generated by our community transform the way we understand the world. We appreciate your continued resilience and dedication to our public land- and sea-grant mission, and we will continue to move forward as one University community.
Kind regards,
Marc Parlange
President
Barbara Wolfe
Provost and Executive Vice President for Academic Affairs