Federal Funding Briefing, April 2025

JAMESON-SELECTED NEWS, STORIES & INSIGHTS

In the April Federal Funding Briefing, we recap some of the news we shared this month. Look for news about new legislation and R&D leadership, updates on indirect rate caps, EOs, and agency guidance, new insights on IP, new perspectives on R&D, and new opportunities for SBIR/STTR.

Proposed Legislation to Help Stabilize R&D Funding. And Why It Matters.

The American Innovation Act, a bicameral bill that would ensure annual budget increases of five percent for critical research at DOE, NSF, NIST, DOD, and NASA, was reintroduced in April. Details here.

Recently published data from the Organization for Economic Cooperation and Development’s Main Science and Technology Indicators show that U.S. growth in gross domestic expenditures on R&D (GERD) is slowing, while China’s has remained relatively high and stable. Read the article.

The Ever-Changing World of Federal Grants and Contracts

There’s a lot going on in government funding right now, from new guidance and potential changes to the FAR to cuts in indirect cost rates and contracts, as well as legal challenges. Here’s what we shared in April: 

Guidance and Changes to Terms and Conditions

• Grant recipients are responsible for overseeing their subawards. Federal agencies must ensure that they are effectively doing so. Recent guidance from the OMB will enhance oversight. Read the guidance.
• NIH announced changes to terms and conditions governing federal funding, applicable to NIH grants, cooperative agand other awards, including future awards. Details here. 
• New Guidance on Salary Limitation for Grants and Cooperative Agreements FY 2025 is here.

Changes to the FAR

• Executive Order 14275, “Restoring Common Sense to Federal Acquisition Regulation (FAR), will lead to substantial streamlining. Learn what’s under review, what may change, and what it could mean.
• A second EO also calls for the prioritization of commercially available products and services as required by FASA (1994). Read the article.

 Indirect Cost Rate Challenges and Grant Termination 

• As expected, the administration will appeal the permanent injunction on NIH cuts to indirect funding. Details here.  
• The government cut indirect rates for DOE funds to 15%. Details here.  A judge promptly blocked it. Details here.
• If your federal grant is terminated by the government, here’s what you need to know.
• The government wants to align NIH indirect cost rates with those provided by foundations. JAMA doesn’t think that’s healthy.  Read the article. 

Jameson & Company has been watching the indirect cost rate issue closely and has published a new blog on the subject. In it, we discuss the 15% indirect rate cap, how it will impact the way NIH grants are awarded, and three possible accounting solutions. 

The Future of R&D Is Getting Another Look.

In April, we shared two opinions on cuts to university R&D grants, what they mean today, and how they will transform universities’ approach to innovation. The first, “Blazing New Trails to the Endless Frontiers: Transformation of America’s University Research,” is from Mung Chiang, President of Purdue University.  The second, “Universities Must Become Active Launchpads for Innovation,” is from Gene R. Keselman and Dame Fiona Murray, both from MIT.

Venture capital isn’t just funding innovation; it shapes what kind of innovation is possible. This article says it’s time for the indie era of start-ups.

Recent uncertainties in federal funding are causing startups and investors to reassess their strategies for obtaining non-dilutive capital in the biomedical research sector. Read the article.

Understanding, Managing and Protecting IP

Contractors navigating federal procurement must understand how intellectual property (IP) is created, owned, and licensed under government agreements. Here are six essential tips: Read the article

Creative ability and innovation go hand in hand. Ownership must come with creativity. Read the article.

Listen or read the transcript of a discussion on the weaknesses and strengths of the U.S. IP system, the shift created by companies that underpin weaknesses, and potential ways to repair it. 

April Federal Funding Briefing: Info For SBIR/STTR Grantees, Contractors and Investors                                                                                                  

It takes nine development steps or Technology Readiness Levels (TRLs) for an innovation to go from a promising concept to commercial realization. Learn how the DOE’s grant and loan programs support this progress. 

Considering doing business with the federal government? Start by reading this introductory guide.

DOE Fast-Track Grants expedite the decision and award of SBIR and STTR Phase I and Phase II funding. Here’s how to prepare one. 

Tech Connect SBIR/STTR Spring Innovation Conference is June 9-10 in Austin, Texas. This is a great opportunity to network with federal decision-makers, investors, and industry experts. Attend informative sessions. And check out technology showcases. Register here

A Phase I funding award requires the meticulous tracking of spending in compliance with FAR Part 31. You must be able to produce Job Cost Reports and calculate indirect cost rates to progress to Phase II. Our Phase I DIY Survival Kit shows you how to turn QuickBooks Online into a compliant accounting system. Details here.

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