The document outlines the efforts of the Joint Associations Group (JAG) on Indirect Costs, comprised of leading national academic associations, independent research institutions, hospitals, and foundations, to address growing concerns regarding the current Facilities and Administrative (F&A) cost model for U.S. federally funded research. In response to increased scrutiny and indications from Congress and the White House that status quo explanations of F&A are insufficient, JAG has convened a team of subject matter experts to rapidly evaluate the existing model’s limitations—such as lack of transparency, administrative burden, and inconsistency in application—and to create a new, implementable indirect cost framework. The initiative demonstrates broad sector engagement, extensive coordination among stakeholders, and commitment to transparency and efficiency, including active solicitation of input from the wider research community through webinars and an online portal.
The group’s charge focuses on ensuring that the new model is auditable, project-linked, efficient, equitable across institution types, and streamlined to reduce administrative complexity while supporting the U.S.’s preeminence in research and innovation. Two provisional models—collectively called the Fiscal Accountability in Research (FAIR) Models—have been developed, both of which eliminate the traditional F&A rate negotiation process and emphasize transparent, project-specific cost reimbursement. These models are undergoing real-world testing across varied institutions, with an expected refinement period involving substantial government and community input before a final unified model is delivered to stakeholders. This reform initiative aims to rebuild trust between academia and the federal government, support national research priorities, and ensure ongoing accountability to taxpayers.
