Hi Reader,

There’s a lot of noise in federal grants right now, from talk of indirect cost caps to sweeping budget proposals. This week, we’re helping you cut through the headlines so you can make smart, informed decisions in an ever-shifting funding landscape.

Should You Pursue a NICRA in 2025?

You’ve probably seen the headlines: NIH’s 15% cap on indirect costs. Now DOE and NSF are following suit. Add to that the recent rescission of indirect-cost-heavy awards at institutions like Harvard and UT, and the question becomes urgent:

Should I apply for a Negotiated Indirect Cost Rate Agreement now?

Here’s what to consider:

NICRAs are still legal and allowable under 2 CFR 200. And for many organizations, they’re vital for recovering essential admin and overhead costs.
But some agencies may not honor high NICRAs on future awards, especially under increased political scrutiny.
The application process is long, and in the current environment, the return may not justify the effort for every organization.

📌 If your work depends heavily on research or multi-award funding, now is the time to assess your cost recovery strategy before committing to a new rate negotiation.

The Skinny on the “Skinny Budget”

The White House’s draft “skinny” budget introduced steep cuts to programs across health, housing, education, and the arts. But here’s the truth:

It’s a starting point, not a final budget.
Key programs like CMS and Title I education funding still have bipartisan support.
Courts have already intervened in recent funding clawbacks, a reminder that some proposed changes may not hold.

📌 This is a time to stay informed and engaged. Share data with your elected officials, talk to your program officers, and be ready to pivot.

FAQ of the Week

Q: Should I still apply for a federal grant in this environment?

A: Yes—but be strategic. Make sure the opportunity is listed on the agency’s official site, hasn’t been quietly rescinded, and aligns with current funding priorities. If the NOFO feels out of step with recent shifts, check if DOGE had a role in the release.

Thinking about a NICRA? Run a cost-benefit analysis. Consider your funding sources, admin cost burden, and likelihood of receiving future awards that will honor your rate.

Last Call for Next Week’s Webinar:
How to Handle Early Termination

With award rescissions in the news again, do you know what to do if your funding is cut mid-project? Join us for a live compliance webinar next week that breaks it all down.

📅 May 22 | 1–2 PM ET

Reserve Your Spot Now

Stay #GrantReady with MyFedTrainer!

As federal funding continues to shift, we’ll keep helping you navigate what’s real, what’s just noise, what’s changing, and what to focus on. Follow us on LinkedIn for real-time updates or email us anytime at Support@MyFedTrainer.com.

Guiding your grant journey,