November 7, 2007

Final Pentagon Spending Bill Would Reduce Rate of Indirect-Cost Reimbursements on Grants

By Jeffrey Brainard

Washington

Congressional leaders approved on Tuesday a controversial provision in a spending bill that would cap overhead, or indirect costs, on basic-research grants and contracts financed by the Pentagon at 35 percent.

Congress is expected to approve the overall bill this month, although lawmakers are arguing over provisions that would affect the war in Iraq.

The language on overhead is a blow to universities, who have said it would unreasonably shift to them a larger

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