Columbia University in the City of New York

What are indirect costs?

Funding for science is front-page news, with the National Institutes of Health (NIH) announcing cuts to indirect costs. Unfortunately named, indirect costs may not sound important. But these funds are the foundation of a system that made the US a global leader in science, as explained in this animation. 

In a model dating back to World War II, direct funds cover specific projects, while indirect funds support the shared infrastructure behind those projects. One pays for the ingredients on the shopping lists for dinner. The other pays for the kitchen itself.

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