FAIR Model Prepared for Congressional Review as OMB Develops Alternative Proposal

By: Abigail Randolph
Wednesday, December 17, 2025
Throughout the year, FASEB has been engaged in discussions pertaining to new models for calculating Facilities and Administration (F&A or Indirect) costs. In February, FASEB issued a statement rebuking the proposed 15 percent flat F&A rate for the National Institutes of Health (NIH) awards and began tracking the efforts of the Joint Associations Group (JAG) on Indirect Costs to develop a more transparent model for calculating these real costs of research. FASEB provided feedback on the FAIR model in August, and joined over 200 organizations in endorsing JAG's efforts to streamline F&A calculations while also reflecting the true costs of conducting federally funded research.

The FAIR model was developed as an alternative to the administration’s earlier proposal to apply a flat 15 percent F&A rate across research agencies. JAG representatives have briefed congressional offices and federal officials on the proposed framework and are hopeful that a draft bill reflecting the FAIR model will be considered once appropriations legislation is complete. Concurrently, JAG is working with the research community to communicate the goals of the FAIR model and provide updates on where the model stands. In November, the American Society for Pharmacology and Experimental Therapeutics (ASPET) hosted one of many such discussions. 

The White House Office of Management and Budget (OMB) is preparing a regulatory action process that could result in a separate indirect cost model. Early indications suggest that the OMB model may either impose a flat 15 percent cap on F&A recovery across all institutions or limit the proportion of a project budget that can be allocated to indirect costs to 15 percent. If adopted, such restrictions would be especially problematic for large universities, medical centers, and independent research institutes.  

More information about the FAIR model, including recordings of recent virtual town hall meetings hosted by JAG, can be found on this page.