Federal Funding Briefing, March 2025

JAMESON-SELECTED NEWS, STORIES & INSIGHTS

In the March Federal Funding Briefing, we recap some of the news we shared this month. Look for updates on NIH’s 15% indirect rate cap and agency cuts, a greater focus on compliance, support for SBIR/STTR programs, and the latest on funding agencies and R&D opportunities. 

NIH’s 15% Indirect Rate Cap. Agency Contract Terminations. Next Steps.

In early March, a US district court issued a preliminary injunction blocking the NIH’s 15% indirect rate cap. This doesn’t mean the government will stop pursuing ways to limit indirect cost recovery.  Recent articles from experts discuss possible ways forward.

This article from McDermott, Will & Emery provides legal background on indirect costs, the shortcomings of the rate change notices,  and possible next steps for grantees.

Jameson & Company has been watching this issue closely and recently 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. Our upcoming new webinar, NIH Grants—Living in Trump’s 15% World, will focus on one particular solution. Helping you envision running your business more like non-profit-with indirect costs, like rent, being charged as a direct expense, and how to document and effectuate the change in accounting method. Stay tuned.

A “termination for convenience” allows the government to unilaterally end a contract without the contractor being at fault. If you’re a contractor, you need to understand your rights and how to recoup costs. Start with this blog from Holland & Knight.

Renewed Support And Hope For SBIR/STTR Programs

With the SBIR and STTR programs set to expire on September 30, 2025, lawmakers are discussing potential reforms including increased budgets, improved commercialization opportunities and expanded research security measures. Get the details here.

As key provisions of the Tax Cuts and Jobs Acts set to expire, Congress must decide whether and how to amortize R&D expenses under Section 174.  Read this article to learn why Sycamore Growth Group believes making R&D tax credits transferable is the answer.

A bipartisan, bicameral bill was introduced in the Senate to restore injunctive relief for patent infringement. Get an overview of The RESTORE Patent Rights Act of 2025 here and the full text as introduced here.

Compliance Is Serious Business

Federal funding comes with strict regulations and demands compliance. As oversight increases, assessing risks, strengthening internal controls, preventing fraud and optimizing grant management becomes critical. Learn more.

Complying with the FAR means complying with FAR Cost Principles. Here are six essential tips to do just that.

Since we all learn from example, read about an NSF SBIR grantee who just settled a fraud case for nearly $525,000.

The DoD And DoE Look Forward

The Full-Year Continuing Appropriations and Extensions Act of 2025 reduced Pentagon RDT&E funding but provides greater flexibility.  Get the details.

AFWERX and SPACEWERX selected 23 small businesses with Phase II contracts to apply for funding through STRATFI, a program designed to bridge the gap between prototype and full scale production and deployment. Learn about the program and the selectees.

At the 2025 ARPA-E energy technology conference, hundreds of energy research projects were on display. MIT Technology Review shares the four innovations that caught their eye.

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

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.

DoD Contracting for Startups 101.  If you have a small business or innovation and want to contract with the DoD, this article is for you. It’s a deep dive into DoD funding categories, types of contracting pathways,  compliance, case studies and more. 

What VCs Need to Know about SBIR Acquisitions: A business with an SBIR grant or contract is often full of opportunity—and complex rules and regulations. Read the article.

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.

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