First some basic math: if a project is budgeted at a direct cost of $500,000, the indirect rate of 60% applies to the $500,000, i.e. $300,000.
The total grant is thus $500K + $300K = $800K. The $300K indirect costs are thus 37.5% of the total. This is an upper limit, as many direct costs such as equipment do not get indirect rates applied to them.
Second, these rates are painstakingly negotiated with the NSF and NIH. Yearly audits to ensure compliance must be passed if funding is to continue.
Third, these indirect cost go towards to items such as electricity, heat, building maintenance, safety training and compliance, chemical disposal, and last by not least laboratory support services such as histology labs, proteomics core, compute infrastructure, and some full time staff scientific staff. Only a relatively small portion goes to administration.
Finally, scientists generally would welcome review and reform of indirect costs to ensure they get the maximize benefit from the indirect rates. However, DOGE is not interested in reform. They are interested in raze and burn destruction.
If DOGE gets its way, it will knock the Unites States off its perch as the world’s technological leader.
