Long-term it is unlikely that an institution can cover the kind of budgetary shortfall this ICR cut represents. . . . If NIH grants are not financially sustainable for an institution, the institution might reduce or eliminate NIH applications or even seek to end an existing grant contract. . . .
Publishers should also anticipate additional subscription cancellations and declining interest in transformative and pure publish agreements from research institutions. Library support for research is factored into an institution’s ICR and is an infrastructure expense that is easier to cut than, for example, support for mandated regulatory compliance. . . .
As institutions face budget shortfalls, administrative support staff—who handle essential tasks like grant management, compliance reporting, and research coordination—may be among the first to be let go. . . .
[P]ublishers that charge APCs for open access publishing may be buffered against some of the ICR cut implications because APCs are eligible to be budgeted as direct costs.
From “NIH Announces It’s Slashing Funding for Indirect Research Costs“
In the agency’s announcement, the NIH’s Office of Policy for Extramural Research Administration, or OPERA, wrote that $9 billion of the $35 billion total spent on research grants in fiscal year 2023 was allocated from the agency for indirect costs, which cover things like equipment, operations, maintenance, accounting and personnel.
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