Paying for University Research Facilities and Administration Book

Federal spending for scientific research at U.S. academic institutions equals approximately $15 billion each year. According to the analysis in this report, about three-quarters of this amount supports the direct costs of conducting research. The other one-quarter covers facilities and administrative (F&A) costs. F&A costs encompass spending on such items as facilities maintenance and renewal, libraries, and the salaries of departmental and central office staff. Universities share in the costs of research, including the F&A costs. Some costs are not reimbursed by the federal government, including administrative costs above a cap. The authors estimate that universities pay between $0.7 and $1.5 billion in F&A costs that would otherwise be eligible for federal reimbursement. The research partnership between the federal government and universities is widely praised for its contributions to the public welfare. The costs shared by each participant in the system are subject to policy debate and negotiation. This report provides up-to-date quantitative and qualitative data on F&A costs to inform that policy debate.Read More