The Council on Governmental Relations (COGR), representing over 190 research universities and affiliated institutions, submitted comments addressing proposed changes by the Department of Health and Human Services (HHS) concerning the adoption of the Office of Management and Budget's Uniform Guidance. The proposed rule would amend 45 CFR 75.414(c) to cap the indirect cost rate at 8% for certain grants to foreign organizations and entities, including application of this restriction to their subawards and subrecipients. COGR argues that this proposal conflicts with section 200.414(f) of the Uniform Administrative Requirements, which permits all non-Federal entities without a negotiated indirect cost rate, regardless of their national status, to apply a de minimis indirect cost rate of 10%.
COGR recommends that HHS reconsider the proposed reduction, noting the valuable role international organizations play in U.S. research efforts. The association urges HHS to instead apply the 10% de minimis rate outlined in the Uniform Administrative Requirements for all non-Federal entities, ensuring consistency and fairness in the application of indirect cost rates. The letter underscores the importance of regulatory alignment to support productive international research collaborations.
