Dear colleagues,
On Friday, June 13, the Department of Defense released a new memorandum implementing its previously announced 15% cap on indirect cost rates. The capped rate applies to all new assistance awards to institutions of higher education on or after June 12, 2025. For existing awards, the Department of Defense will also apply the indirect cost rate of 15%. The cost rate cap is not required to be retroactive to the beginning of an existing award, but it must be implemented no later than November 10, 2025.
We are actively monitoring updates from all federal agencies and engaging with our federal delegation to ensure that they understand the impact these changes could have on the University of Iowa. We will reach out to campus if a temporary restraining order (TRO) is issued that prevents implementation of the above-referenced policies.
Please continue to work with the Division of Sponsored Programs on upcoming submission deadlines and subaward agreements. We will work with investigators to ensure proposal submissions can move forward following the most recent guidance from federal agencies and institutional leadership.
If you have project-specific questions, or receive communication directly from a federal agency, please continue to communicate with the Division of Sponsored Programs at dsp@uiowa.edu.
Thank you,
Lois
Lois Geist
Interim Vice President for Research
