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Frequently Asked Questions (FAQs) about the Indirect Costs of Federally Sponsored Research

  1. Why does the federal government provide support for indirect costs of research?
  2. How do universities spend indirect cost payments from the federal government?
  3. Is it true that some universities spend up to 50 to 75 percent of the funds they receive from the federal government to pay for indirect costs?
  4. Do universities contribute any of their own funds towards research of do they only use federal and state dollars to support research?
  5. How does what the federal government pays to universities for indirect costs on research compare to what the government pays for other performers of government research, such as the national laboratories of industrial contractors?
  6. Is the federal government actually subsidizing the work being sponsored by the foundations and industry?
  7. Why do federal grants need high indirect costs when universities accept grants from non-profit foundations with zero to low indirect costs?
  8. Are federal indirect cost payments being used to subsidize other campus accounts, such as athletics of construction? How does the government ensure accountability for these payments?
  9. Why is there so much variation in indirect cost rates between institutions?
  10. How often does a university’s indirect cost rate from the federal government change?
  11. If the government cut back on the amount is was willing to pay for indirect costs, how would universities cover these costs?
  12. Has the percentage of federal funding going towards indirect costs changed over time?

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