Earlier this month, the Trump administration signed a bipartisan Democratic proposal to raise the federal debt ceiling and extend US government spending at its current level through December 8. This gives the government three additional months to negotiate agreements for fiscal appropriations in 2018. In appropriation bills proposed by the House and Senate Appropriations Committees, spending propositions exceed the caps of 2017. In order to meet these spending proposals without activating a default sequestering of agency funds, the discretionary spending caps established through a 2011 budget control law must be modified.

The newly signed legislative package also includes emergency funds for Hurricane Harvey and wildlife relief, as well as legislation barring the NIH from making changes to its reimbursement rates for facilities and administrative costs through December 8. These rates, or indirect costs, can comprise the vast majority of a grant, as universities and labs depend on reimbursements in order to continue hosting research. The NIH commonly negotiates these rates with universities, representing other science funding organizations. As the provision is now a law, the government cannot make any changes to the NIH’s reimbursement rates process unless new legislation is proposed.

Source: American Institute of Physics