Dear Members of the Pitt Community:

We want to bring to your attention the guidance announced at the close of business Friday by the National Institutes of Health (NIH). Pursuant to this guidance, which is scheduled to take effect Monday, Feb. 10, the NIH will cap “indirect costs” of research grants at 15%. These indirect costs provided for researchers and scientists (also called F&A) represent operational imperatives such as facilities (i.e., office, lab space) and administrative functions (grant, finance or administrative support). For reference, the Association of American Universities (AAU) has created an FAQ about F&A.

With the NIH serving as Pitt’s largest federal research sponsor at nearly $700 million (sixth nationally), funding that represents over half of the University’s $1.2 billion in research expenditures (17th nationally), primarily focused on the health sciences, we recognize the significant impact this guidance could potentially have across our entire Pitt community on our work and for the many people involved directly and indirectly. We’ve undertaken an immediate impact analysis of the overall financial consequences for Pitt in real time along with estimated forward-looking projections. In addition, we’re engaging closely with universities across the country, and with our national representative associations, as they consider the appropriate responses.

Ultimately, the full impact of this change in the short and long term remains to be seen, but there is no doubt that our collective scholarly impact could be harmed irreparably, as could our broader mission. We recognize time is of the essence, as is the importance of taking our next steps thoughtfully. We will continue to keep you updated as more information becomes available.

Sincerely,

Joseph J. McCarthy
Provost and Senior Vice Chancellor

Dwayne Pinkney
Executive Senior Vice Chancellor for Administration and Finance
Chief Financial Officer

Rob A. Rutenbar
Senior Vice Chancellor for Research

Anantha Shekhar
Senior Vice Chancellor for the Health Sciences
John and Gertrude Petersen Dean, School of Medicine