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U-M president flags federal cap on indirect cost reimbursements, affirms academic freedom
Summary
President Ono told the Board of Regents the university and higher-education partners are responding to an NIH directive that would cap indirect cost reimbursements, noting a coalition of 22 states sought a temporary restraining order; he reiterated the university's commitment to academic freedom and announced internal reviews of indirect cost practices.
President Ono opened the Board of Regents' first 2025 meeting by welcoming new Regent Carl Myers and addressing federal actions affecting university research funding.
Ono said the National Institutes of Health issued a directive capping indirect cost reimbursements at 15 percent and that the university — working with peers across the sector — helped mobilize a coalition that included 22 state attorneys general, including Michigan Attorney General Dana Nessel, to challenge the directive; he said a federal judge issued a temporary restraining order. "The NIH directive and other federal guidance carry significant financial implications," Ono said, and added that the university's chief financial officer and team are modeling potential outcomes and preparing responses.
Context and implications: Ono framed the policy as part of a broader time of change for higher education and said the university will analyze indirect-cost reimbursements to ensure efficient use of public funds. He also reaffirmed the university's commitment to academic freedom, saying scholarship, curriculum and research should remain under faculty purview.
What the board did: No board vote was taken specifically on NIH policy at this meeting. Ono said he has asked his team to analyze indirect-cost reimbursement impacts and report back.
Next steps: The university will continue monitoring federal guidance and litigation as it assesses budgetary impacts and potential responses.
