Cutting F&A Reimbursement Harms Cancer Research & Patient Care
- F&A (Facilities & Administrative) costs—also known as indirect costs—support critical research infrastructure, including utilities, maintenance, lab equipment, compliance, and security.
- Capping F&A at 15% of a grant total would significantly reduce funding for cancer centers, forcing them to divert resources from research to cover essential operational costs.
- F&A cuts could slow or even halt lifesaving cancer research, delaying new treatments for patients.
F&A Costs Are Not Waste—They Are Essential Research Expenses
- Labs require specialized infrastructure: temperature-controlled environments, advanced security, tissue banks, and IT systems.
- Cancer center administrators ensure compliance with federal, state, and local regulations on patient privacy, clinical trials, and safety.
- These costs are real, audited, and essential—not simply “overhead” or unnecessary spending.
The Proposed F&A Changes Would Increase Administrative Burden and Costs
- Tracking every indirect expense for each grant would be an inefficient, costly bureaucratic burden.
- The current system—where institutions are reimbursed based on legitimate, audited expenses—is the most effective and transparent approach.
Slashing F&A Reimbursement Threatens U.S. Research Leadership
- The U.S. leads the world in medical research, but cuts to indirect cost funding will reduce our global competitiveness.
- Cancer centers may be forced to scale back research operations, giving foreign competitors an advantage.
Protecting Indirect Cost Reimbursement Protects Patients and the Economy
- Cancer deaths have declined 33% over the past 30 years thanks to major NIH-funded advances, including immunotherapies and genetic discoveries.
- NIH research supports thousands of jobs and contributes billions to the economy.
- Sustained investment in NIH-funded research ensures continued innovation and economic growth.
Action Item: Oppose the 15% Cap on Indirect Costs
- Urge the administration and Congress to reject the 15% cap and maintain full F&A reimbursements.
- Cancer centers need stable, predictable funding to continue their lifesaving work.
- Protecting NIH funding ensures continued innovation, economic stability, and better patient outcomes.