Yale declaration supports lawsuit challenging NSF reimbursement rate cap

May 9, 2025 

On Friday, May 2, 2025, the National Science Foundation (NSF) issued a new policy setting a standard facilities and administrative (F&A) reimbursement rate of 15% for future awards to all institutions of higher education. This marks a substantial change to Yale’s current rate of 67.5%, which the government set for the university through extensive negotiations in fall 2024. It follows similar standard rate caps previously announced by the National Institutes of Health (NIH) and the Department of Energy (DOE), which courts have temporarily halted. 

This significant reduction in reimbursements for costs that are essential to conducting federally funded research poses a material threat to the discoveries Yale and other universities make on behalf of people across the United States. These reimbursements support key infrastructure and staff necessary for conducting complex research—ranging from specialized equipment in laboratories and core facilities to staff scientists who support the research community to individuals who ensure the well-being of human subjects in clinical trials and prevent technologies from being accessed by foreign actors, among other critical functions. Without support for these real costs, important federally funded research cannot and will not occur. 

On May 8, Yale submitted a public declaration to support the lawsuit challenging the 15% standard cap, which was filed jointly by the Association of American Universities (AAU), the American Council on Education (ACE), the Association of Public and Land-grant Universities (APLU), and thirteen research universities. Yale’s declaration makes clear the significant impact this cap would have on crucial research in quantum science, artificial intelligence, biotechnology, and many other areas that contribute life-saving innovations, improve the lives of all Americans, and advance the United States’ standing in the world. It also warns that without support from the federal government, with whom we partner to carry out this work, universities will be held back from achieving breakthrough discoveries that have made America a global leader in innovation. For decades, universities have collaborated with the federal government and industry partners to develop devices, drugs, diagnostics, security infrastructures, and much more for the good of society. 

At Yale alone, with the support of NSF funding, researchers are developing technology to improve navigation for ships, airplanes, and autonomous vehicles. This technology has the potential to enhance transportation safety, national security, and autonomous systems in commercial and defense applications. Researchers are designing and building new computing architectures that enable quantum computers to automatically correct errors, or “noise,” so users don’t have to.  Yale faculty and students are building the first “Quantum Internet,” leading a project that serves as the national blueprint for the next generation of high-speed quantum computing networks. This work will spur advancements in hack-proof data transmission, scientific discoveries, and a quantum-trained workforce. Impeding these and many other projects at Yale and across the United States means that our country, our communities, and lives across the nation will suffer. 

Each year Yale plans its budget with the understanding that the federal government will appropriately reimburse the university for costs incurred to conduct research performed on its behalf. The university also contributes its own funds to support research across campus. In fiscal year 2024 alone, Yale spent $432 million on faculty and student research endeavors and has committed additional amounts to build its research capacity, including over $1.5 billion in research facilities and infrastructure for quantum science, computing, and material science, and $150 million to harness the power of artificial intelligence. Given these already substantial investments in research, the university cannot cover the government’s share of the costs to conduct federally sponsored research without reallocating dollars that support other priorities, including undergraduate scholarships that make Yale the least expensive four-year school in Connecticut for families earning less than $110,000. Other priorities at risk of being impacted include financial aid and support for graduate students and investments to advance medical research, among other areas important to the nation. 

On behalf of university leadership, I reaffirm Yale’s commitment to preserving and advancing its research mission. We will continue to advocate, alongside partners and collaborators, for the fundamental contributions that universities make across the United States. It is essential that we continue to thrive as an engine for discovery and advance the interests that touch all American lives: health, security, and prosperity. 

Michael C. Crair 
Vice Provost for Research