Indirect costs, also known as facilities and administration costs, included in many USDA National Institute of Food and Agriculture (NIFA) funded grants have previously been limited to at most 22%. The FY 2012 minibus appropriations bill provides language (see below) that allows for up to 30% for indirect costs, at least for grants funded in FY 2012. Indirect cost rates for most research institutions hover around 50%. This change in policy at the USDA represents a major step towards rates honored at other science funding agencies.

Text from the appropriations bill:

SEC. 720. None of the funds in this Act shall be available to pay indirect costs charged against any agricultural research, education, or extension grant awards issued by the National Institute of Food and Agriculture that exceed 30 percent of total Federal funds provided under each award: Provided, That notwithstanding section 1462 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310), funds provided by this Act for grants awarded competitively by the National Institute of Food and Agriculture shall be available to pay full allowable indirect costs for each grant awarded under section 9 of the Small Business Act (15 U.S.C. 638).

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