The Council on Governmental Relations (COGR), representing over 190 research universities and affiliated institutes, submitted comments addressing proposed changes by the Department of Health and Human Services (HHS) to its implementation of the Office of Management and Budget's Uniform Guidance. COGR's letter focuses on a provision in the proposed rule that would restrict indirect cost rates to a maximum of 8% for certain grants to foreign organizations and public entities, applying this cap to subawards and subrecipients as well. COGR points out that this proposed limitation is inconsistent with section 200.414(f) of the Uniform Administrative Requirements, which allows any non-Federal entity without a negotiated rate to charge a de minimis indirect cost rate of 10%, without making a distinction based on the recipient's geographic location.
COGR expresses concern that maintaining a lower, 8% cap specifically for foreign organizations not only undermines the principles of the Uniform Guidance but could also hinder the participation of valuable international partners in U.S.-funded research. Accordingly, COGR urges HHS to align its policy with the Uniform Administrative Requirements by rescinding the 8% limitation for foreign organizations and allowing them to use the standard 10% de minimis rate, thus ensuring consistent and equitable treatment of all entities involved in federally funded research.
