The university is closely monitoring the implementation of the new policy announced by the U.S. National Science Foundation: Implementation of Standard 15% Indirect Cost Rate. The policy statement shares, in part, that the “NSF will apply a standard indirect cost rate not to exceed 15% to all grants and cooperative agreements awarded to IHEs for which indirect costs are allowable.” 

This F&A rate maximum applies only to new awards beginning on May 5, 2025 and does not apply retroactively to existing awards. 

As with other instances of policy changes during the past several months, we are examining this  potential impact on the VCU research enterprise. 

Principal investigators do not, and will not, need to change rates on current or future projects; the Division of Sponsored Programs and/or Grants and Contracts Accounting will adjust F&A rates, as necessary. For clarity, all proposals should be submitted in accordance with our existing negotiated rate agreement.

As we learn more about this new NSF F&A rate and other federal policies, we will continue to provide timely updates and guidance through email communication and on our federal funding updates webpage.

The OVPRI is aware of yesterday’s notice (NOT-OD-25-090) from the NIH,  which, in part, requires recipients of NIH funds to certify that they: 

• do not, and will not…operate any programs that advance or promote DEI, DEIA, or discriminatory equity ideology in violation of Federal anti-discrimination laws; and
• do not engage in and will not…engage in, a discriminatory prohibited boycott.

As are research universities around the country, VCU is examining any immediate implications of this notice. 

Currently, there are no changes to the operations of existing grants and funding - please continue to work and charge expenses to your projects in a prudent manner and according to sponsor-approved budgets.

As soon as possible, we will provide additional guidance.

On April 18, 2025, the National Science Foundation published an updated guidance on its priorities, including a statement from Director Panchanathan and a frequently asked questions section. If you receive a stop work or termination notification concerning existing grants or general information about an operational change from the NSF, please immediately forward them to your sponsored program team in the OVPRI (find your team here). 

As soon as possible, we will provide additional guidance. In the meantime, should there be any material changes, you will receive additional communication.

On April 16, 2025, a judge for the District Court of Massachusetts issued a nationwide temporary restraining order blocking the implementation of the proposed 15% cap on Department of Energy indirect research funds. This nationwide temporary restraining order is significant but is not permanent. The OVPRI will continue to monitor any future filings for this case.

The following message was sent to VCU/VCU Health faculty and staff:

Dear colleagues, 

We are continuing to monitor the impact that federal changes are having on the research enterprise, and more importantly, our faculty, staff and students. 

Every grant we earn is a direct result of the years of tireless efforts of our investigators, co-investigators, and the subsequent study teams and administrative support required to ensure that discovery and innovation can be incubated at VCU. Each grant plays a pivotal role in driving the VCU research enterprise to new heights. 

In short, we are a top 50 public research university because of the groundbreaking work conducted by each of you every single day.

What’s next

At the direction of President Rao, the university is implementing a formal appeals process to support our faculty in examining when a federal appeal may be possible. More information regarding the appeals process can be found here. 

University leadership is also diligently exploring options to support faculty, staff and students who are most impacted by terminated grants. We will provide additional updates as soon as they are available. 

You can find more information about federal research issues here. Information about other federal issues can be found here.  

We are committed to finding ways to continue to support the researchers and teams who are conducting impactful research across the enterprise.

Thank you for your continued dedication, professionalism and innovative spirit.

Sincerely,

Fotis Sotiropoulos, Ph.D.
Provost and senior vice president for academic affairs

Marlon F. Levy, M.D.
Senior vice president for VCU Health Sciences and CEO of VCU Health System

Meredith Weiss, Ph.D.
Senior vice president for finance and administration and CFO

Srirama Rao, Ph.D.
Vice president for research and innovation

The OVPRI is closely monitoring the implementation of the new policy announced on Friday: Department of Energy Overhauls Policy for College and University Research, Saving $405 Million Annually for American Taxpayers. The policy statement shares, in part, that “it will limit financial support of ‘indirect costs’ of DOE research funding to 15%.” 

As with other instances of policy changes during the past several months, we are examining this  potential impact on the VCU research enterprise. 

Principal investigators do not, and will not, need to change rates on current or future projects; the Division of Sponsored Programs and/or Grants and Contracts Accounting will adjust F&A rates, as necessary. For clarity, all proposals should be submitted in accordance with our existing negotiated rate agreement.

As we learn more about this new Department of Energy F&A rate and other federal policies, we will continue to provide timely updates and guidance through email communication and on our federal funding updates webpage.

Information about other federal issues can be found here. 

On March 5, 2025, a federal judge issued a nationwide preliminary injunction blocking the implementation of the proposed 15% cap on NIH indirect research funds. This nationwide preliminary injunction is significant but is not permanent. The OVPRI will continue to monitor any future filings for this case.

The following message was sent to VCU research faculty and staff:

Dear colleagues,

As many of you will have read last week, in response to the Feb. 14 “Dear Colleague” letter from the U.S. Department of Education’s Office for Civil Rights, the university will undertake a review of the Research strategic plan in light of new federal guidance. We will continue to provide updates as this process continues. 

From a federal research funding perspective, we have seen several NIH study sections now posted on the Federal Register. While this is welcome news, it does not yet account for the currently cancelled or postponed sections, or provide any clarity on council meetings which provide the final approval for funded grant proposals. 

As we await additional updates to court cases and executive orders, please continue to check the federal research updates website for the most current advice and recommendations. At this time, no other institutional changes are being implemented and I request you to continue to continue to submit your grants as planned and consult with your unit level leadership to discuss your individual research studies and plans.

Finally, as we approach next month’s Research Weeks, I encourage you to join us in celebrating your colleagues and the groundbreaking research that we continue to conduct here at VCU. I hope you will consider joining me for the State of the Research on April 15 and I am looking forward to seeing many of you at department, school and college events throughout the month. 

While the current federal research landscape is challenging and uncertain, we must remember to take time to celebrate the progress that we have already made and remind ourselves that the research that we do at VCU not only advances the frontiers of science, discovery and innovation, but also impacts the communities and the patients we serve, as well as leads to significant economic development in the region and the commonwealth. This is not the time to slow down - the research you do matters. I look forward to learning about your continued research impact in the weeks and months to come.  

Thank you for all that you do and with my best wishes,

Sriram

The OVPRI continues to monitor the impacts to federal funding during the current administrative transition period. As of today, there are no changes to university research operations. 

• NIH indirect cost cap
  • On Feb. 21, 2025, a federal judge extended the temporary restraining order blocking the implementation of the proposed 15% cap on NIH indirect research funds. The decision follows arguments from 22 states and several academic organizations, which emphasized the potential harm that these funding restrictions could pose to research progress and infrastructure. While it's unclear what the duration of the extension is, Judge Kelley has indicated that she hopes to make a ruling "quickly."
  • Detailed information on this case can be found here.

• Pause on updates to the Federal Register
  • Nature has reported that NIH grant reviews continue to be delayed, causing both a backlog of applications and the awarding of new grants to be stalled.

• Executive order: “Implementing the President’s ‘Department of Government Efficiency’ cost efficiency initiative”
  • On February 26, 2025, President Trump signed an executive order directing agencies to review existing contracts and grants within 30 days. The guidance prioritizes the review of grants and contracts to educational institutions. Additionally, the EO instructs agencies to develop technological systems and guidance to record contract and grant payments as well as written justifications for those payments. Any impact of this executive order is not immediately clear or actionable for VCU.

On Wednesday, Feb. 12, university leaders hosted a virtual meeting regarding federal research. This update session included remarks from: 

• Michael Rao, Ph.D., VCU president
• Fotis Sotiropoulos, Ph.D., provost and senior vice president for academic affairs
• Matthew Conrad, J.D., vice president for government and external relations
• P. Srirama Rao, Ph.D., vice president for research and innovation
• Arturo P. Saavedra, M.D., Ph.D., dean of the VCU School of Medicine
• Marlon F. Levy, M.D., senior vice president for VCU Health Sciences and CEO of VCU Health System
• Meredith Weiss, Ph.D., senior vice president for finance and administration and CFO

During the session, university leaders reemphasized their commitment to the VCU research enterprise. This included the following updates: 

• VCU is involved in bipartisan conversations at the state and federal level about how White House executive orders, federal agency directives and court decisions may impact VCU.
• VCU has more than 850 active federal grants for this fiscal year. As of Feb. 14, the university has received stop-work or termination guidance for very few of them.
• If a proposed 15-percent cap on indirect costs were to go into effect for current and future NIH grants, the financial impact to VCU would be approximately $26 million.
• Researchers should continue to work on existing grants and submit proposals for new ones. 

Participants were able to submit questions during the session. Below are answers to questions that can be answered at this time:

How is VCU working with legislators, government officials and other stakeholders on these matters?

VCU is working closely with our partner institutions both in Virginia and across the country. We are also engaging with our national associations to share the impacts of these proposed directives. Additionally, our government relations team is engaging in bipartisan conversations at all levels of government. 

What would be the impact of the proposed federal cap on indirect costs?

Indirect (F&A) costs are expenses incurred by the institution in support of sponsored projects. Currently, VCU’s indirect cost rate is 55.25 percent. If a proposed 15-percent cap on indirect costs were to go into effect for current and future NIH grants, the financial impact to VCU would be approximately $26 million. While VCU is committed to monitoring potential changes, speculation and chasing down hypothetical outcomes will not help us serve our students or communities.

If we are aware of any impacts to research operations or patient care directly in relation to any White House executive orders, federal agency directives and court decisions, what should we do?

Please share any impacts with your research representatives.

How can we stay up-to-date with what is happening at the federal level?

The OVPRI will continue to update its federal updates webpage with material impacts to the VCU research enterprise. For a full listing of executive orders, agency directives and court decisions, the Council on Government Relations is maintaining a 2025 Administration Transition Information & Resources webpage. 

What is the current status of VCU’s grants and what should researchers do with their planned proposal submissions?

As of Feb. 14, 2025, very few of VCU’s 850+ federal grants have been impacted by the executive orders and agency directives. We have also been able to process “drawdowns” from all federal agencies as scheduled. 

Unless explicitly directed otherwise by a funding agency, researchers should continue to conduct their research as planned, including submitting proposals by their posted deadlines and charging their accounts in a prudent manner. 

What can I do to help?

VCU’s researchers conduct important, life-saving research every day. The most important thing is that we continue to conduct research and inform university administrators of any stop-work orders or other communications from federal agencies requesting that they stop their research. 

What should I do if I receive outreach from members of the media?

VCU Enterprise Marketing and Communications, Public Relations leads campus-wide VCU media relations and is also available to support inquiries from the media and to lead public information efforts for VCU and VCU Health. Should you receive any outreach from members of the media, please contact Michael Porter, Associate Vice President for Public Relations, at mrporter@vcu.edu.

• On, Feb. 7, 2025, the National Institutes of Health released Supplemental Guidance to the 2024 NIH Grants Policy Statement: Indirect Cost Rates (NOT-OD-25-068), implementing a new cap on facilities and administrative (F&A) rate of 15%. Principal investigators do not, and will not, need to change rates on current or future projects; the Division of Sponsored Programs and/or Grants and Contracts Accounting will adjust F&A rates, as necessary. For clarity, all proposals should be submitted in accordance with our negotiated rate agreement.
• On February 10, 2025 a number of temporary restraining orders regarding NIH NOT-OD-25-068 were issued. Thus, VCU will not be immediately affected by this change. We will continue to monitor this situation and provide updates as we have them.
• We also draw your attention to FAQ #12 on the NSF website (https://www.nsf.gov/executive-orders). We reiterate that researchers should continue to conduct research and to charge expenses to projects in a prudent manner and according to sponsor-approved budgets.

We are continuing to closely follow the implementation of the recent federal executive orders and agency guidances pertaining to research in higher education, including yesterday's Supplemental Guidance to the 2024 NIH Grants Policy Statement: Indirect Cost Rates (NOT-OD-25-068). 

The policy statement shares, in part, that:

• There will be a standard indirect rate of 15% across all NIH grants for indirect costs in lieu of a separately negotiated rate for indirect costs in every grant.
• This applies to all current grants for go forward expenses from February 10, 2025 forward, as well as for all new grants issued.  

As with the other instances over the past several weeks, we are examining this guidance and its  potential impact on the research enterprise. 

As we learn more about the NIH F&A rates or other federal policies, we will continue to provide timely updates and guidance through email communication and on our federal funding updates webpage.

Earlier this afternoon, the Office of Management and Budget’s memo (M-25-13), that called for a blanket temporary pause of federal agency grants, was rescinded. This does not rescind any other memo or executive order, so agencies will still be reviewing existing grants for compliance with other EOs. 

Additionally, any previously announced agency communication pauses are still in place.

As has been the case for the past week, please continue to conduct your research and to charge expenses to your projects in a prudent manner and according to sponsor-approved budgets. Additionally, do not postpone your plans to submit your grant proposals on time; continue to submit them as planned and by the posted due dates.

We will continue to utilize and update the federal funding updates website as additional information becomes available. 

The OVPRI is aware of yesterday’s memo from the Office of Management and Budget (M-25-13), which will impact federal agencies today, Jan. 28, at 5 p.m. As are research universities around the country, VCU is examining the implications of this pause. 

Currently, there are no changes to the operations of existing grants and funding - please continue to work and charge expenses to your projects in a prudent manner and according to sponsor-approved budgets. Additionally, do not postpone your plans to submit your grant proposals on time; continue to submit them as planned and by the posted due dates. All federal grant submission systems are currently operational and are expected to remain that way.

If you receive a stop work or termination notification concerning existing grants or general information about an operational change from a federal agency, please immediately forward them to your sponsored program team in the OVPRI (find your team here). As soon as possible, we will provide additional guidance. In the meantime, should there be any material changes, you will receive additional communication. Additional updates and resources will continue to be posted on our federal funding updates webpage.

It is anticipated that the pause at federal agencies is temporary with additional guidance expected by Feb. 1. However, it is important that we are able to continue to gather the most important and up-to-date information as possible. 

With that in mind, please consider the following two points: 

• Unless you are otherwise notified by federal agencies or the OVPRI, do not postpone your plans to submit your grant proposals on time - i.e., continue to submit them as planned and by the posted due dates. All federal systems are currently operational and are expected to remain that way.
• If you receive any stop work order or termination notifications concerning existing grants or general information about a change in operational status from a federal agency, please immediately forward them to your sponsored program team in the OVPRI (find your team here). This will allow us to better understand any individual situations and/or the current operations of each federal agency. 

We are staying in close and frequent touch with our senior research officers and federal government relations representatives both with Virginia’s research universities and across the country, and with associations such as the Association of Public and Land-grant Universities, in order to track changes as they develop. 

Should there be any material changes, you will receive additional communication from the OVPRI. Additional updates and resources will continue to be posted on our federal funding updates webpage. 

VCU is a nationally prominent public research university with a significant number of federally funded projects. Yesterday, several federal research agencies announced that all or partial operations are under review by the new administration. While reviews are consistent with a change in administration, we are closely monitoring the evolving situation around federal research projects to understand what impact these changes may have on our researchers, students and the communities we serve. The university will continue to adhere to the laws, policies and processes outlined by federal agencies.

Along with other research universities around the country, VCU is also seeking clarity about what comes next. We will communicate new information when we have it and update the OVPRI website with the latest information when available.

In the meantime, should you have any questions or require any assistance in speaking with or responding to communications from program officers, please do not hesitate to contact your representatives within the OVPRI.

Thank you for all that you do to make VCU a special place.

COGR is the national authority on federal policies and regulations affecting U.S. research institutions. The organization's mission is to empower an unparalleled U.S. academic research ecosystem by advancing sound federal policies and regulations that are vital to U.S. science and innovation leadership and our nation’s health, security, and prosperity.

COGR has compiled an extensive listing of resources relating to the current administration transition.

Click here to view updated information and resources.

The APLU has created several resources to help provide additional information regarding current White House executive orders, federal agency guidances and facilities and administrative costs:

• APLU Overview of President Trump's Executive Orders
• Facilities & Administrative (F&A) Costs of Research
• Costs of Federally Sponsored Research infographic
• Frequently Asked Questions about Facilities and Administrative (F&A) Costs
  of Federally Sponsored University Research