Understanding Research Overhead

Facilities and administrative (F&A) costs include a range of indirect expenses not directly covered by research grants—from janitorial and support staff, to utilities and computing, to workplace safety compliance and service contracts for high-end research equipment.

Watch the video or read a factsheet describing what F&A reimbursements (also known as indirect costs or overhead) are, how they are determined, and why they are important.

"Investing in science is investing in our future—it’s good for people’s health, for our quality of life, and for the economy," states the Council on Government Relations. Reducing F&A reimbursements would have a disasterous impact on research institutions' ability to foster technologial innovation, advance medical discoveries, sustain a dynamic American economy, and protect our national security, COGR warns. It maintains that the reimbursement process is efficient, based on acutal research costs, and already partially borne by universities. In fiscal 2023 universities paid $28 billion from their own institutional funds to support research, including $6.8 billion for the federal share of F&A costs that wasn't reimbursed.

An association of research universities (including 42 ARCS partner institutions), affiliated medical centers, and independent research institutes, COGR is the national authority on federal policies and regulations affecting U.S. research institutions. 

Council on Competitiveness

Proposed reduction to National Institutes of Health funding "will negatively impact ongoing, critical life sciences and medical research at a time when competitors, especially China, are looking for any advantage to seize the lead in the global innovation race, and to dominate critical exponential technologies from AI to the biosciences." Read the complete statement

ARCS Foundation is a member of the council, which unites leaders from academia, business, labor, and the national labs, in a nonpartisan effort to lead the global economy, strengthen the innovation infrastructure, and raise the standard of living for all Americans.

American Association of Universities

"A cut to F&A reimbursements for NIH grants is quite simply a cut to the life-saving medical research that helps countless American families.” Read AAU President Barbara Snyder's complete statement

27 ARCS partner universities are members of AAU.

Association of Public Land Grant Universities

"This action will slow advances for millions of patients who desperately need critical breakthroughs and imperil the U.S. position as the world leader in biomedical innovation." Read APLU President Mark Becker's complee statement

27 ARCS partner universities are members of APLU.

NOTE: AAU and APLU joined with the American Council on Education in legal action contesting NIH cuts to F&A. Read more

American Association for the Advancement of Science

“Science, engineering and medicine are searches for truth, facts and objectivity. We live in a time when that seems under threat,” observed AAAS Chief Executive Officer Sudip Parikh at the 2025 AAAS Annual Meeting in Boston. "Decisions made by all three branches of the U.S. government in the weeks ahead will affect our enterprise for years to come," added Board Chair Joseph Francisco.  Read more

DOWNLOAD AAAS PDFs providing talking points for expressing support for science and instructions for visiting Congressional representatives.

In February AAAS and the Royal Society released Science Diplomacy in an Era of Disruption, a science diplomacy framework addressing challenges including increased economic competition, rapid technological advancements like artificial intelligence, and the rise of non-state actors including “tech titans.”