National Institutes of Health Indirect Cost Rate FAQs
NIH recently issued Notice , which has generated questions about whether NIH indirect cost (F&A) rules have changed again—and whether there is any adverse impact for Drexel investigators.
To support the Drexel research community, the Office of the Comptroller and the Office of Research & Innovation have prepared the following FAQs to clarify what has not changed, what has reverted, and how NIH awards should be budgeted going forward.
What You Need to Know
The 15% NIH indirect cost cap is NOT in effect.
The $50,000 subaward MTDC threshold does NOT apply to NIH. The $25,000 limit remains.
Drexel’s federally negotiated F&A rate continues to apply to NIH awards.
NIH has reverted to its prior indirect cost framework. Budget NIH awards accordingly.
Frequently Asked Questions
Last updated: April 2026
For new NIH proposals:
- Use Drexel鈥檚 negotiated F&A rate.
- Apply the $25,000 MTDC subaward cap.
- Use the 10% de minimis rate only for subrecipients without negotiated rates.
- Do not use a $50,000 MTDC base or a 15% cap.
For active NIH awards:
- Expect possible rebudgeting guidance from ORS or Post鈥慉ward, if applicable.
- No retroactive benefit applies from NIH鈥檚 short鈥憀ived 2025 flexibilities.
For new NIH proposals:
- Use Drexel鈥檚 negotiated F&A rate.
- Apply the $25,000 MTDC subaward cap.
- Use the 10% de minimis rate only for subrecipients without negotiated rates.
- Do not use a $50,000 MTDC base or a 15% cap.
For active NIH awards:
- Expect possible rebudgeting guidance from ORS or Post鈥慉ward, if applicable.
- No retroactive benefit applies from NIH鈥檚 short鈥憀ived 2025 flexibilities.
For new NIH proposals:
- Use Drexel鈥檚 negotiated F&A rate.
- Apply the $25,000 MTDC subaward cap.
- Use the 10% de minimis rate only for subrecipients without negotiated rates.
- Do not use a $50,000 MTDC base or a 15% cap.
For active NIH awards:
- Expect possible rebudgeting guidance from ORS or Post鈥慉ward, if applicable.
- No retroactive benefit applies from NIH鈥檚 short鈥憀ived 2025 flexibilities.
No.
- Drexel’s federally negotiated F&A rate remains unchanged.
- There is no new NIH鈥憌ide cap on Drexel’s indirect cost recovery.
- There is no impact on effort reporting, cost allowability, or audit standards.
The March 2026 Comptroller guidance reflected government鈥憌ide updates to the Uniform Guidance. NIH, however, is a specific statutory exception due to long鈥憇tanding Congressional appropriations language.
- The $25,000 MTDC subaward cap continues to apply for NIH awards only.
- Other federal sponsors may still follow updated Uniform Guidance thresholds, unless otherwise restricted.
Researchers should continue to follow sponsor鈥憇pecific guidance, with ORS and Post鈥慉ward assisting as needed.
The March 2026 Comptroller guidance reflected government鈥憌ide updates to the Uniform Guidance. NIH, however, is a specific statutory exception due to long鈥憇tanding Congressional appropriations language.
- The $25,000 MTDC subaward cap continues to apply for NIH awards only.
- Other federal sponsors may still follow updated Uniform Guidance thresholds, unless otherwise restricted.
Researchers should continue to follow sponsor鈥憇pecific guidance, with ORS and Post鈥慉ward assisting as needed.