DOE follows through on promised reduction in indirect costs
DOE indirect costs are limited to 10 percent for state and local governments and 15 percent to non-profit and for-profit companies.
The U.S. Department of Energy (DOE) announced last week three new policy actions that are projected to save more than $935 million annually for the American taxpayer, while expanding American innovation and scientific research.
In three new policy memorandums, the DOE announced that it will follow best practices used by fellow grant providers and limit “indirect costs” of DOE funding to 10 percent for state and local governments, 15 percent for non-profit organizations, and 15 percent for for-profit companies. The projected savings are based on applying the new policies to FY24 fiscal year spending.
“This action ensures that Department of Energy funds are supporting state, local, for-profit, and non-profit initiatives that make energy more affordable and secure for Americans, not funding administrative costs,” Secretary of Energy Chris Wright said. “By aligning our policy on indirect costs with industry standards, we are increasing accountability of taxpayer dollars and ensuring the American people are getting the greatest value possible from these DOE programs.”
The policy actions can be found here.
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