Columbia University – Vagelos Innovation Laboratories
Courtesy of KPF
Columbia University’s acting president, Claire Shipman, has announced plans to visit Washington, D.C., to discuss possible models for changes to indirect cost recovery rates. In February of 2025, the National Institutes of Health (NIH) announced that allocations for costs that maintain the infrastructure and administrative support for federally funded research would be capped at 15 percent, whereas previous policies allowed higher education institutions to negotiate agreements individually.
Columbia reached a $221 million settlement deal in July of 2025 with the current administration to restore access to billions of dollars in federal funding and renew terminated grants, providing continued support for academic excellence and discovery. Despite the mitigating effect of this deal on uncertainty in terms of the university's ongoing strategy, the policy on indirect cost reimbursements that persists into the future will have a strong impact on financial stability, facilities maintenance, and the capacity to conduct vital research.
Working in association with other institutions, Shipman has stated intentions to come to an agreement with Congress to promote the Financial Accountability in Research (FAIR) model. FAIR was developed by the Joint Associates Group, a coalition which includes the Association of American Universities, and proposes the division of indirect costs into project-specific "essential research performance support" and institution-wide "general research operations." If implemented, the model aims to increase transparency, accountability, and clarity in the utilization of federal funds while enabling universities throughout the nation to maintain their competitive edge in scientific and technological disciplines.
