Federal Funding Briefing, February 2025

JAMESON-SELECTED NEWS, STORIES & INSIGHTS

In the February Federal Funding Briefing, we re-cap some of the news we shared this month. Look for updates on NIH cuts and judicial freezes, R&D trends and patent protections, and, as always, lots of info and opportunities for SBIR/STTR grantees and contractors.

The Current, Concerning and Confusing State of Federal R&D Funding

If you’re like us, your emails and news feeds have been filled with information on federal cuts to science funding, the NIH indirect rate cap, a freeze on meetings, judicial action, and more. Here are a few stories we shared on this subject:

• NIH Slashes Overhead Payments for Research: Read here
• I’m a Former HMS Dean. Here’s What NIH Cuts Will Do: Read here. 
• Judged Extends Temporary Block to 15% Cap: Read here and here.
• Procedural “loophole” Leaves NIH Grants Frozen: Read here

This is a fast-moving, constantly changing situation, and there’s a lot of confusion. Know that we are watching it closely.

When Federal Funding Leads To Federal Audits—and Findings

An audit of Northeastern University revealed significant financial mismanagement within several NSF-funded research projects. In addition to $936,125 in unallowable costs, the audit also reported incorrectly applied indirect cost rates, inappropriately allocated salary expenses, non-compliance with federal financial management requirements, and failure to adhere to institutional policies. Get all the details here.  And #staycompliant.

Federal R&D Funding Matters.

A new Administration, new Congress, and new budget cuts inspire new articles on the effectiveness of R&D grants and their agencies. Here’s a sampling: 

• The AAMC advocates for robust funding for the NIH, and has urged policymakers to fully fund the agency. Here’s why.
• BARDA celebrated its 20th anniversary in February. Since its inception, it’s helped guide 100 products through the FDA approval process. Learn more.
• Economists estimate that each dollar invested in R&D can generate $5 in benefits through improved living standards, health outcomes, and productivity gains. Read more.
• What does the U.S. landscape for basic science research look like, what are its funding dynamics, and how do these affect the innovation economy? Find out here.
• Researchers have voiced concerns over NIH’s funding priorities and proposed a range of reforms to foster greater efficiency and more multi-faceted, novel research. Here’s a deep dive into the agency’s structure, funding strategies, allocation processes, and overall impact. Read the analysis.

Protecting innovators. And their innovations.

Go to the data: A comprehensive, open-access dataset identifying government-funded patents from 1900-2020 from the USPTO reveals patterns, limitations, and opportunities. Read it here.

From IP Watchdog: Five fixes to the patent system that the USPTO can deploy. (The comments are interesting, too.) Read it here.

Refuting “march-in provisions,” ITIF presents this fact: In the 18 FDA-approved therapies developed with NIH grants, private funding was 66 times greater than the NIH’s investment. Details here.

Innovation can defend the future of defense.

According to McKinsey, there’s a $250 billion opportunity to build a modernized defense frontier by scaling technology. Learn how innovators and investors are responding, and what it can mean to the future. Read the article.

The defense acquisition system is, sometimes, referred to as the “biggest inhibitors to improving our national security.” Introduced in December 2024, the FoRGED Act (Fostering Reform and Government Efficiency in Defense) will enable greater speed, agility, and innovation. Get the details.

February Federal Funding Briefing: Info for SBIR/STTR Grantees and Contractors

Mark Your Calendars: 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. Link to register is here.

Stay informed. Jameson & Company has a number of ways to help you stay informed about government award accounting, indirect cost rates, audits, and compliance. Access our blogs, white papers, and more here.

Phase I SBIR Accounting Survival Kit.  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 DIY Survival Kit shows you how to turn QuickBooks Online into a compliant accounting system. Details here.

For daily insights on federal funding and government award accounting, follow us on X and LinkedIn.