Universities face cuts in research facility reimbursements - Pat Donachie, Education Dive

Though federal funding to support university research enjoys broad bipartisan support, there is some support for President Donald Trump’s proposal to drastically cut “indirect-cost reimbursements,” which government agencies offer research universities to cover facility and administrative costs, according to The Chronicle of Higher Education. Some critics argue the government should enact a flat rate for such reimbursements, saying there was no incentive for universities not to spend more. However, supporters argued cutting the reimbursements could lead to a “race for the bottom,” and disproportionately burden all but the wealthiest institutions. Some universities, however, may be fine with lower rates, provided direct research is funded more robustly. Colleges and universities find that strong research divisions with federal funding help attract the top students, own patents and garner strong philanthropic support. http://www.educationdive.com/news/universities-face-cuts-in-research-facility-reimbursements/443659/