The document discusses the intersection of facilities and administrative (F&A) costs with ongoing efforts to reform research regulations in the United States. It emphasizes that while research institutions and academic medical centers support reducing unnecessary federal regulations to improve the use of research funds, any anticipated reduction in F&A costs tied to decreased regulatory burden is likely to be gradual and limited. This is due to the complex and time-consuming nature of regulatory reform and the fact that administrative expenses at research universities already tend to exceed the federally imposed cap, compounded by new and pending regulations that further increase workload and unreimbursed costs. Furthermore, administrative burdens on faculty often do not correlate directly with institutional costs, which are significantly influenced by the granular financial tracking required for federal awards.
The document also notes that concerns about escalating federal research regulations and their impact have been well-documented in numerous official reports and government studies, though few recommendations have been acted upon, and regulatory demands continue to expand. Recent legislative initiatives, such as the 21st Century Cures Act and the American Innovation and Competitiveness Act, are seen as potential avenues for meaningful reform, particularly with the establishment of a Research Policy Board to coordinate regulatory improvements. The paper concludes that the effective implementation of recommended reforms could enhance research efficiency by lessening administrative workload and shifting focus toward research outcomes. In the long term, a transformative approach to grants management could potentially reduce F&A rates, and institutions express willingness to engage in further dialogue aimed at modernizing research administration.
