AACN Statement on New NIH Guidance Limiting Indirect Costs for Research Grants

On February 7, 2025, the National Institutes of Health (NIH) issued Supplemental Guidance to the 2024 NIH Grants Policy Statement: Indirect Cost Rates, which sets a standard 15% rate for all Facilities and Administrative (F&A) costs assumed by institutions of higher education receiving federal research grants. Previously, the indirect cost rate was negotiated by NIH and each grantee institution. As the voice of academic nursing, the American Association of Colleges of Nursing (AACN) recognizes the essential nature of F&A costs and is deeply concerned that limiting support will severely diminish the capacity of our nation’s nursing schools to complete research initiatives already underway and discourage future research on improving care outcomes and keeping patients safe.

While we support efforts to advance fiscal accountability, AACN is concerned that this new guidance was issued without stakeholder feedback or adherence to existing laws, regulations, and processes. The new NIH guidance will directly impact nursing schools, including those affiliated with academic health centers and other institutions with strong research missions, while disproportionately impacting smaller schools and the pipeline of future nurse researchers. AACN implores NIH and the Administration to reconsider and reexamine this guidance given the magnitude of its impact on research vital to improving the health of the American people. We encourage NIH to conduct a comprehensive analysis that considers factors such as research area and the varying needs of each institution. Nurse scientists are leading work that is critical to improving health outcomes, advancing health policy, and providing leadership and education to the next generation of nurse researchers, educators, and clinicians. The nexus between nursing education and research must be protected. This is especially true as nurse researchers often serve as faculty who prepare the nursing workforce to be tomorrow’s frontline providers.

AACN urges federal policymakers to take steps towards rescinding this guidance and engaging more closely with academic leaders to find solutions that align with federal priorities and are workable for schools of nursing and our health research colleagues. This collaborative and thoughtful process will ensure our shared goal of ultimately keeping the American population healthy and thriving.

February 11 Update: AACN Signs on to Legal Challenge to New NIH Funding Guidance