NSF: Indirect Cost Rate Guidance

Greetings, 

The University of Washington is aware that NSF has released a new indirect cost rate policy effective May 5th. NSF will apply an indirect cost rate not to exceed 15% to all grants and cooperative agreements awarded to Institutions of Higher Education (IHEs) including the University of Washington. 

As noted by the Provost, the University is seeking legal guidance on the application of the rates and there is a lawsuit challenging NSF’s new policy. 

In the meantime, please note the following guidance on: 

Proposals

Pending Proposals as of May 3rd: All NSF proposals pending submission in OSP as of May 3, were submitted with the UW’s negotiated rates. 

NSF funding opportunities issued on or after May 5, 2025, will include notice of this indirect cost rate policy. While the UW evaluates this new policy, proposals to NSF with no immediate deadline will be on hold, including NSF flow-through. 

For those responding to a funding opportunity posted prior to May 5th, submission will be considered on a case by case basis. 

Advance Spend

Advance spend on NSF awards is prohibited for the time being. 

Awards

Active awards: NSF awards with notice dates before May 5th that have not yet been set up, will be set up with the UW’s federally negotiated rate.

Supplements or incremental funding made via amendments to awards in existence prior to May 5, 2025: These will continue to use current indirect cost rate consistent with the UW’s federally negotiated rate.

New awards: NSF awards issued on or after May 5, 2025 with NSF’s new 15% capped rate will be placed on hold in OSP until further notice. PIs who receive NSF awards should proceed with routing via the SAGE Award Setup Request (ASR) or SAGE Modification (MOD), but note that OSP will place on “HOLD”. 

Thank you, 
The Office of Research and the Office of Sponsored Programs