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It isn’t “administrative overhead.” It’s indirect costs.

Does research happen in buildings? Yes.

Is that an indirect cost? Yes.

What happens when you can’t pay to use buildings? You can’t do research in them.

Private foundations and other grantors can pay lower overhead because universities are often losing money on those programs and footing the difference.

Again, I am not suggesting the rates need to be where they have wound up. I am saying that you cannot remove 50%+ of a program’s budget overnight and expect not to disrupt or potentially fatally damage its operations.

Thinking a research university can lose tens or hundreds of millions of dollars per year in funding and not cut research is beyond naive.



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