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U Pittsburgh pauses all PhD admissions amid DOGE funding cuts

colincooke

The entire academic industry is in turmoil, the uncertainty on how bad things could get is probably the worst of it as Universities are having to plan for some pretty extreme outcomes even if unlikely.

For those who are questioning the validity of a 59% (or higher for some other institutions) overhead rate, your concerns are worth hearing and a review could be necessary, but oh my please not like this. This was an overnight (likely illegal!) change made with no warning and no consultation.

If the government decided that a cap was necessary it should be phased in to allow for insitutions to adjust the operational budgets gradually rather than this shock therapy that destroys lives and WASTES research money (as labs are potentially unable to staff their ongoing projects). A phased in approach would have nearly the same long-term budget implications.

Are there too many admin staff? Likely? Is this the right way to address that? Absolutely not.

For those who are unfamiliar with how career progress works in Academia, it is so competitive that even a year or two "break" in your career likely means you are forever unable to get a job. If you're on year 12 of an academic career, attempting to get your first job after your second (probably underpaid) postdoc and suddenly there are no jobs, you can't just wait it out. You are probably just done, and out of the market forever as you will lose your connections and have a gap in your CV which in this market is enough to disqualify you.

eezurr

>For those who are unfamiliar with how career progress works in Academia, it is so competitive that even a year or two "break" in your career likely means you are forever unable to get a job.

Honest question. If the job market is that competitive, why are we guiding people down this path that requires investing their entire young adult life? To me, it seems you've inadvertently made a case for cutting funding.

jltsiren

The big question is how should the government allocate the funding for basic research between career stages to maximize the benefit to the society.

If you focus on training PhDs, which is the American way, you get a steady stream of new people with fresh ideas. But then most PhDs must leave the academia after graduating.

If you focus on postdocs, you get more value from the PhDs you have trained. Most will still have to leave the academia, but it happens in a later career stage.

If you focus on long-term jobs, you have more experienced researchers working on longer-term projects. But then you are stuck with the people you chose before you had a good idea of their ability to contribute.

gizmo686

We aren't really. We are guiding people to get college degrees. However, undergraduate education and professional research are both done by the same institution. Further, that institution likes to have those professional and apprentice professional researchers work as teachers. The result of this is that undergraduates get a lot of exposure to professional Academia, so they naturally have a tendency to develop an interest in that profession. Given how small the profession actually is, even a small tendency here saturates the job market.

johnnyanmac

At this point, what profession isn't "small"? It feels like jobs are declining across all industries except for the most exploitative ones they can't easily outsource.

rayiner

> For those who are questioning the validity of a 59% (or higher for some other institutions) overhead rate, your concerns are worth hearing and a review could be necessary, but oh my please not like this. This was an overnight (likely illegal!) change made with no warning and no consultation.

Why should the public believe that procedures that produced 59% overhead rates in the first place can be trusted to fix those overhead rates now? Sounds like a demand for an opportunity to derail needed reform by drowning it in red tape.

Also, what would be illegal about the change? Are the overhead rates in a statute somewhere? The grants certainly aren’t individually appropriated by Congress.

mlyle

> Also, what would be illegal about the change? Are the overhead rates in a statute somewhere? The grants certainly aren’t individually appropriated by Congress.

2024 appropriations (and it showed in many years before then-- Public Law 118-47. Statutes at Large 138 (2024): 677.

SEC. 224. In making Federal financial assistance, the provisions relating to indirect costs in part 75 of title 45, Code of Federal Regulations, including with respect to the approval of deviations from negotiated rates, shall continue to apply to the National Institutes of Health to the same extent and in the same manner as such provisions were applied in the third quarter of fiscal year 2017. None of the funds appropriated in this or prior Acts or otherwise made available to the Department of Health and Human Services or to any department or agency may be used to develop or implement a modified approach to such provisions, or to intentionally or substantially expand the fiscal effect of the approval of such deviations from negotiated rates beyond the proportional effect of such approvals in such quarter.

rayiner

That says the indirects must be based on the existing regulations. The memo purports to rely on the existing regulations. It relies on 45 CFR §75.414(c)(1), which states:

> The negotiated rates must be accepted by all Federal awarding agencies. An HHS awarding agency may use a rate different from the negotiated rate for a class of Federal awards or a single Federal award only when required by Federal statute or regulation, or when approved by a Federal awarding agency head or delegate based on documented justification as described in paragraph (c)(3) of this section.

Subsection (c)(3), in turn, says:

> (3) The HHS awarding agency must implement, and make publicly available, the policies, procedures and general decision making criteria that their programs will follow to seek and justify deviations from negotiated rates.

Just based on a quick perusal it seems like the administration has a decent argument that the agency head can approve the 15% indirect by fiat as long as he or she comes up with a documented justification.

skwb

> Also, what would be illegal about the change?

At the *very* least you should be following the administrative rules act (requiring you to solicit 45 days for comments by effected parties) before making such a dramatic change in policy.

Courts absolutely love striking down EOs (of both Dems and Reps Admins) when they should have been following the administrative rules act.

rayiner

You can file an APA lawsuit about anything. Nobody really calls APA violations “illegal.” It’s a “show your work” and “don’t be drunk or crazy” procedural law.

addicted

The “overhead” isn’t even overhead as most people understand it.

But the real question is why does the general public think 59% is too high? Irs an arbitrary number. Maybe an appropriate level of “overhead” is 1000%.

In reality the people who actually know anything about how this is calculated, across the board and across the political spectrum, do not think this is a major concern at all.

The only people who are complaining about it are the ones who hear the word overhead, have no concept of what it means other than taking a lay persons understanding that all overhead is unnecessary and are coming with the idea that anything above 0% is bad.

colincooke

1. Why should the public believe that they can fix it. Perhaps they can't, that's not entirely my point. My point is that if the government firmly believes that a change is necessary there are _simple_ ways of acheiving such a change without causing such chaos, waste, and hardship. Perhaps a phased in approach, or other mechanisms. Overnight shock therapy offers very little economic benefits while having very harsh personal and insitutional cost.

2. What is illegal about the change. The NIH overhead rate is actually negotiated directly between the institution and the NIH, following a process put into law. This is why a federal judge has blocked this order [1]. I'm far from a lawyer, but my read of this is that this is a change that would need to come through congress or a re-negotiation of the rates through the mandated process.

[1]: https://www.aamc.org/news/press-releases/aamc-lawsuit-result...

BenFranklin100

You seem to be unfamiliar with how indirect rates work.

First some basic math: if a project is budgeted at a direct cost of $500,000, the indirect rate of 60% applies to the $500,000, i.e. $300,000.

The total grant is thus $500K + $300K = $800K. The $300K indirect costs are thus 37.5% of the total. This is an upper limit, as many direct costs such as equipment do not get indirect rates applied to them.

Second, these rates are painstakingly negotiated with the NSF and NIH. Yearly audits to ensure compliance must be passed if funding is to continue.

Third, these indirect cost go towards to items such as electricity, heat, building maintenance, safety training and compliance, chemical disposal, and last by not least laboratory support services such as histology labs, proteomics core, compute infrastructure, and some full time staff scientific staff. Only a relatively small portion goes to administration.

Finally, scientists generally would welcome review and reform of indirect costs to ensure they get the maximize benefit from the indirect rates. However, DOGE is not interested in reform. They are interested in raze and burn destruction.

If DOGE gets its way, it will knock the Unites States off its perch as the world’s technological leader.

a2tech

You can tell people the truth all day long. They don’t want to hear it. They’re convinced that academia is rotten to the core and none of your facts and figures will dissuade them.

For example I know at my institution every dollar, every piece of effort, is painstakingly tracked and attributed to funding sources. We have extensive internal checks to make sure we aren’t misusing funds. Audits happen at every major milestone. All of that effort is reported. It’s exhausting but the government requires it because we have to be good stewards of the funds we have been granted. No one believes it.

AStonesThrow

> knock the Unites States off its perch as the world’s technological leader.

It's a funny thing. there is a distinct chauvinism to any citizen's nation. Every American is confident and absolutely positive that we are the best in so many categories. By what metrics? And who measures these? What about other nations who claim the top spot as well?

Before I travelled to Europe in 2008 I had some mental image of backwards, technologically inept populace that had old electronics and lagging standards and rickety brittle infrastructure. I mean you watch films and look at pictures and you see the roads and the old buildings and the funky cars and there's just a mix of things that are 500 years old or 1500 years back and thoroughly modern.

when I finally showed up in Spain I was completely disabused because all the electronics and the homes were totally modern and there were big box superstores that looked exactly like Target or safeway.

We went to shopping malls, watched normal first-run films in luxurious theaters that sold beer, and we rode around in cars/trains/boats, and I visited veterinarian and physician and hospital, and the medical treatment was indistinguishable from the American type.

I mean, this is one consumer's anecdata, but you've got to consider that we're ready to believe vague propaganda about #1 America First Outclassing The Solar System, and the fervent patriotism is perhaps not a 100% accurate lens.

Universities are designed to collect and disseminate knowledge worldwide. The top institutions and even the worst ones thrive on international collaboration. Think about how difficult it is to achieve and hold military superiority even. Schools are an effective equalizer, and globalist mindsets are the default.

johnnyanmac

>Also, what would be illegal about the change?

Besides the president screwing with the budget agreed upon by Congress that kicked all this off?

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fooker

I have a PhD from a reputed US university and I agree with the fixed overhead aspect of this.

There is no reason students get a third of the grant money and live in poverty (30k per year) while the university hires a football coach for ten million and builds a new building every year.

This is exactly the way this has to be handled, the universities are intentionally making this look worse than it is for public sympathy.

colincooke

Again please read my post carefully. There is a valid critique of overhead rates, but simply doing it suddenly in this manner has little added economic benefit in the long run, while ruining lives and creating waste/chaos in the short run.

You can make a strong argument these institutions require reform, but such reform should be done not overnight, and not through such broad strokes.

fooker

I disagree.

The kind of reform you are talking about does not work against quasi-government organizations with the GDP of small countries.

It'll be held up in courts for 50 years, and even then it'll be a game of whack a mole.

There's a reason things got so bad.

robwwilliams

Spurious. Football coaches are not paid by overhead dollars. but mainly by alumni that like football wins.

No, when a major for-profit company outsources research they pay way more than a 50% “markup”. Unless they go to a research university: then they pay much less, and just like the federal government they are getting a fine deal.

Yes, some rich foundations (Gates, Ellison etc) exploit the situation and do not pay full overhead costs: They are essentially mooching on the research institutions and the federal government.

fnordpiglet

Doesn’t the football stuff fund itself through tickets, licensing, etc? It seems hard to believe research overhead grants are going to the football coach.

fooker

Money is fungible.

epolanski

> you are forever unable to get a job

In academia*

ars

> it should be phased in to allow

This NEVER works. It just doesn't.

Bureaucracies are self perpetuating, it's just their nature. Each person at the bureaucracy is 100% certain they are essential.

The only way to shrink them is to force them.

johnnyanmac

It worked during Clinton's administration, and didn't involve a wrecking ball. It's possible when people actually commmunicate with each other.

costigan

The federal workforce, as a percentage of all jobs in the U.S. was 4% in the 50's, decreased steadily to 2% in 2000 and has held roughly steady since then. (The source is https://usafacts.org/articles/how-many-people-work-for-the-f... second figure, and I'm taking total jobs as a proxy for the population that the workforce serves.)

The end of that period of reduction was Clinton's Presidency. Clinton's National Performance Review (NPR) started at the beginning his term in '93. It had goals very similar to the stated goals of this efficiency effort, but it was organized completely differently. He said, "I'll ask every member of our Cabinet to assign their best people to this project, managers, auditors, and frontline workers as well."

GPT4o: The NPR's initial report, released in September 1993, contained 384 recommendations focused on cutting red tape, empowering employees, and enhancing customer service. Implementation of these recommendations involved presidential directives, congressional actions, and agency-specific initiatives. Notably, the NPR led to the passage of the Government Performance and Results Act (GPRA) of 1993, which required federal agencies to develop strategic plans and measure performance outcomes. Additionally, the NPR contributed to a reduction of over 377,000 federal jobs during the 1990s, primarily through buyouts, early retirements, natural attrition and some layoffs (reductions-in-force or RIFs).

Source: https://govinfo.library.unt.edu/npr/library/papers/bkgrd/bri...):

The recommendations that involved changes to law, the GPRA, were passed in both houses of Congress by unanimous voice vote.

I don't think the stated goals of the current efficiency drive are controversial. The problem is the method. I want to understand the basis for people supporting those methods, the "we've got to break some eggs" crowd, when the example of the NPR exists. In my opinion, it didn't cause conflicts between branches of government, didn't disrupt markets, and was wildly successful. It also caused much less disruption in people's lives, because the changes were implemented over several years with much more warning.

I, personally, don't think the real goals of this effort are the stated goals, but that's a different issue.

blindriver

Elon proved with Twitter that large corporations can survive drastic, chaotic and insane levels of cuts/layoffs (80%+) and still survive. If DOGE waited to do things less drastically, nothing would ever get done. The cuts that are going through are nothing as drastic as what Twitter endured (except USAID) so I guess he is willing to risk short term disruption for long-term spending cuts and that the organization will reorganize and restabilize pretty quickly.

viccis

> can survive drastic, chaotic and insane levels of cuts

I get ads on X that are just videos of animals being slowly shot multiple times to death. There's also some for tools to slim jim car locks. None of the mainstream/normal accounts I used to follow (shout out SwiftOnSecurity) are there, and instead it's a hotbed of crypto scams and deranged vitriol. The site is still running, but is a shell of its former self, making so little money that Elon is trying to sue people (and now, abusing US govt payment systems) to force them to pay him for advertising.

I can see how if you think that's a success, that you would think similar actions with regard to the US government are successful. The necessary cuts he's making are not necessary, and I'm guessing you aren't impacted, so, given the general lack of theory of mind towards others, I'm not surprised you think they're ok. The rest of us out there who understand the idea of human suffering are concerned for our fellow citizens facing arbitrary and unnecessary pain as the result of a capricious court eunach's drug influenced decisions before the "restabilization" that will never happen.

duxup

> and still survive

Twitter hardly ever made money before and after is in the same state now. Its contribution (anything?) to this country is far different than a government institution.

The comparison here isn’t encouraging and makes no sense.

antman

Amazon made almost no profits for many many years others too. They follow a reinvest or expansion strategy and if investors believe it the stock goes up. It is not encouraging that Twitter lost 80% of its value under Musk's leadership and not something pne wants for the US Government which also does not work on a for profit basis. Ofcourse Musk fakes that he doesn't know that and promotes his unsubstantiated wins stories daily.

costigan

This equivalence between a company that provides one app that, if it were to disappear, would hurt no one, and a government that has thousands of functions, many of which are life-and-death in both the short and long run, is just ridiculous.

ars

Very few government functions are life or death.

addicted

Twitter’s valuation has plummeted since Elon’s purchase.

And to the extent Twitter is still limping along it’s because Twitter due to its very nature benefits immensely from the stickiness of social networks.

For example, Facebook is almost completely junk. It hasn’t improved or been relevant in a long time. And yet it survives and makes tons of money simply because people don’t want to rebuild their networks.

There are many other examples where even minor cuts have been devastating. The classic example is of course GE, the ultimate example of cutting a company to the bone, which worked for a decade or so, but set the company up to essentially cease to exist after.

Then you have Boeing, a company in an industry with less competition than probably any other in the world and it’s struggling to make money because of this thinking.

hedora

> short term disruption

Great euphemism for “In one month, we’re going to kill tens of millions by withholding food/medical care and permanently destroy institutions that took a century to build”.

I’m going to use that phrase.

shusaku

This is the most infuriating part of this. Musk acted like a moron and overpaid for twitter. Then cash constrained, he rapidly cut things to save money. Now twitter is completely diminished in its reach, at an all time brand low, and at real risk from competitors.

Meanwhile, the companies Musk built that actually have dominated their space are big idea innovators like Tesla and SpaceX. Musk wasn’t successful because he’s a good penny pincher, he was successful by burning cash on big ideas and talented people.

But somehow we decided its case 1 that we’ll apply to the government.

johnnyanmac

Case 2 had a lot of safeguards around Musk to keep him isolated from the talented people. But Case 1 made Musk feel better. So we know which one he prefers. Not like he's going to suffer the losses the most.

antman

Elon proved with Twitter that he doesn't know what he is doing. Huge loss, zero lessons. If US ends up being downsized financially and ethically the way Twitter has, that will also provide zero lessons for Musk.

ks2048

It seems Twitter is in a death spiral. That is the model to apply to scientific research and academia that has powered Americas dominance for the past 100 years?

jmclnx

Who needs educated people to solve tomorrows problems. China believes so, good for the US heading to the trash heap of failed nations by their own actions.

dkjaudyeqooe

You can still get an education, you just have to be rich.

Gigachad

So the number of educated people in the country drops

rayiner

The america that put a man on the moon had only 10% of adults with a college degree.

mlrtime

You mean like Pitt's endowment of 5.8 Billion?

yongjik

Oxford and ETH Zurich will be open for the rich, but Trumpists openly despise higher education, and I'm not sure whether any American universities will be safe if Trump stays in power for four years.

wraaath

RIP US-based Academia INC In the immediate term, obviously the center of academic research moves to Europe/Asia, but the longer term damage is irreparable. Where is the 0-1 basic research that fundamentally moves the ball forward going to come from? Clearly not the US anymore.

fooker

Great that you have invoked China. Guess what their research grant overhead is? 15-20%.

hsuduebc2

They would in the end vote against you. You can't let that happen.

CSMastermind

Franco and Stalin both increased University funding.

Cuba to this day spends more of its GDP on education than any other nation on Earth.

Syria (under Assad) spent more than South Korea, Afghanistan more than Greece, Iran more than the UK, Egypt more than Ireland, Iraq (under Sadam) more than Japan, Saudi Arabia more than Canada, etc.

You can look it up, the more totalitarian the government the higher the spend on education not less.

There's three big cohorts that heavily fund their University systems:

1. The Nordic States 2. Former British colonies 3. Dictatorships

monero-xmr

China doesn’t fund all of the bullshit research America does in the social sciences of dubious quality and reproducibility. I would love to axe everything that isn’t a hard science.

tokioyoyo

They have a whole fund for it called National Social Science Fund that funds non-STEM and alike research.

Loughla

Yes. The only thing that contributes to society is science.

That's why we have museums devoted exclusively to science and the study of science. It's why scientists tend to write great books about the human condition.

Jesus Christ.

Also. Define hard science please.

monero-xmr

It seems to me that wonderful books about philosophy and the human condition could be written without taxpayer funding, considering all of human knowledge is available at our fingertips

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rayiner

If a Chinese university was spending 59% on overheard the university president would be imprisoned. The CCP has no tolerance for that kind of thing.

bnjms

What part of these new policies helps address this issue?

rayiner

The fact that the policies limit overhead to 15%?

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monero-xmr

And America didn’t allow that for a long time. Obama attempted to cap indirect costs unsuccessfully.

America also has what appears to be an unlimited tolerance for undergraduate tuition fully paid for by non-dischargeable debt.

You’d be hard pressed to find another group in America with less sympathy than universities with the common man. Except perhaps government workers

vkou

That says more about the common man than it does about the institutions he hates, and it says nothing good about him.

jslezak

Amid uncertainty about frozen research aid from the National Institutes of Health, the University of Pittsburgh has put its Ph.D. admissions on ice. The school confirmed Friday that there would be no new Ph.D. offers of admission while Pitt works to understand how reduced federal aid could impact the institution.

The move comes as research universities across the country battle against the National Institutes of Health over a policy to reduce the funding cap for ancillary research expenses like building construction and maintenance as well as support staff.

The policy would reduce the cap for those indirect research costs to 15%. Pitt’s current rate is 59%. A federal judge extended a temporary pause on implementation of that policy Friday. But Pitt’s decision to halt admissions was made earlier in the week.

"After the announcement that NIH indirect costs would be capped at 15%, the University’s Office of the Provost temporarily paused additional Ph.D. offers of admission until the impacts of that cap were better understood,” a Pitt spokesperson said in a statement to WESA.

etrautmann

It’s worth noting that Pitt’s indirect rates are normal for universities and this is how the system functions.

SJC_Hacker

Its "normal" because its generally accepted, not because it makes any sense.

I was part of a research lab on grants like that. We had close to $1m in total funding, on top of that indirect was like 50% (so $500k/year) We maybe had 4000 sq. foot of lab space in an old building that wasn't maintained well. We had one bathroom for each gender on the floor for the research arm of two whole medical departments. Two admins for the whole research department of 7-8 labs totallying maybe 60-70 staff.

I ran the numbers and the lab space would have maybe cost $100k/year tops (probably more like $80k, depending on quality) if we were rent out equivalent industrial office space. On top of that you have electrical, heating, telecom, at most $10k. Support services such as HR, cleaning, IT support (of which we didn't use a whole lot) could have been contracted out, at most around $20k. So there was about $350k which I figured was mostly just a subsidy and went to "administration". Not that I was philosophically opposed to it, except maybe the admin.

dgacmu

You're actually still misunderstanding overhead a little.

Overhead isn't applied uniformly. For example, tuition for Ph.D. students isn't charged overhead, nor is (usually) equipment. So on $1m of funding, if you've got 4 Ph.D. students, that may be something like $200k/year of tuition that isn't subject to overhead. Add in another $100k of equipment and suddenly that 50% indirect cost rate is actually more like 35%, so you end up doing $1m of "work" on $1.35m of budget.

Departments often negotiate something called "overhead return", which is a way of returning a small amount of money to the individual departments -- some of this does things like supporting Ph.D. students if their advisor runs out of funds, or helping research faculty bridge short funding gaps. These things are reasonable and help the institution remain coherent through the uncertainty of grant-driven existence.

There's waste everywhere, but it's not quite as bad as it might seem without a deeper understanding of the university research funding model.

SideQuark

The parts you list result in wasted research money. The system you complain about results in more R&D getting out into the world.

The money you complain about goes to run an org that has connections, does advertising, provides stable employment when grants fluctuate, has hiring and HR and payroll and a zillion other services, all making those doing the research more able to do research, and provides more channels to move results into production.

So it makes sense. You just haven’t thought through or had to perform all the pieces, so to you it doesn’t make sense.

cozzyd

Typically overhead is only charged on a portion of expenses. In our case, anything over $5k or that is part of a "constructed equipment" over $5k (these two categories are the large majorities of expenses in our lab, as most things we buy are components of detectors we build) are overhead free. Supplies/laptops/travel/tools/business meals/inexpensive equipment do incur overhead, but the effective overhead rate is much less than the nominal one.

Animats

They are high relative to private industry. They're supporting all those administrators that colleges have accumulated.

It's significant that U. Pitt. chose to stop admitting students rather than starting to lay off administrators.

mlyle

Administrative bloat is a concern, but these indirect costs include things like equipment, too.

If you build a good lab which has versatile equipment to address many use-cases, the indirect costs will be high.

sightbroke

Not really, and it's not really how things work either.

Private industry is charging/billing cost + margin for profit.

University is saying X is allocated for research, Y is allocated to keep the lights running for the facility and pay for students. The students are generally funded by research, not the University. No research money, no money for students.

ks2048

Do you know that “overhead” costs are not equivalent to payouts to administrators?

chipgap98

Is there a stat or place I can read more about that? I hear people throw throw the idea of administrative bloat around a lot but would be interested to see data behind that

AdieuToLogic

> They are high relative to private industry.

Academia is not "private industry."

jslezak

Private industry does not run campuses full of graduate courses and basic research that America’s technological prosperity depends on

Those overhead fees go to fund that, so universities don’t have to be even mere full of nepo baby donor legacy admissions than they already are

Merrill

59% indirect research costs for administrative overhead seems high. Could it be that these charges against grants are used to fund students in other subject areas where grants are not available?

jofer

It's pretty typical, actually. 50% is about the minimum that major universities take out of a grant you get as a researcher at the university.

It's nominally to fund general facilities, etc. At least at public universities, it does wind up indirectly supporting departments that get less grant money or (more commonly) just general overhead/funds. However, it's not explicitly for that. It's just that universities take at least half of any grant you get. There's a reason large research programs are pushed for at both private and public universities. They do bring in a lot of cash that can go to a lot of things.

This also factors a lot into postdocs vs grad students. In addition to the ~50% that the university takes, you then need to pay your grad student's tuition out of the grant. At some universities, that will be the full, out-of-state/unsupported rate. At others, it will be the minimum in-state rate. Then you also pay a grad student's (meager) salary out of the grant. However, for a post-doc, you only pay their (less meager, but still not great) salary. So you get a lot more bang for your buck out of post-docs than grad students, for better or worse. This has led to ~10 years of post-doc positions being pretty typical post PhD in a lot of fields.

With all that said, I know it sounds "greedy", but universities really do provide a lot that it's reasonable to take large portions of grants for. ~50% has always seemed high to me, but I do feel that the institution and facilities really provide value. E.g. things like "oh, hey, my fancy instrument needs a chilled water supply and the university has that in-place", as well as less tangible things like "large concentration of unique skillsets". I'm not sure it justifies 50% grant overhead, but before folks get out their pitchforks, universities really do provide a lot of value for that percentage of grant money they're taking.

rayiner

Well that makes it sound worse than I thought. Why should it be any higher than the pro rata allocation of the project’s actual use of university facilities (lab space, equipment, etc)?

Even in the defense industry, a cost-plus contract with a 10% margin is a lot. And it’s a federal crime to include costs in the overhead amount that aren’t traceable to the actual project.

SJC_Hacker

Its essentially a subsidy, and been abused for years.

One clarifying point. Indirect is normally charged on top whatever the PI gets. So they don't "take out" 50% the total. They add 50% to the original grant. So if a researcher gets a $500k grant, 50% indirect would be $250k, and the total allocation is $750k.

bglazer

First the rate was negotiated on a per institution basis with the government. It’s based around a mountain of oversight and compliance. Ironically all that compliance work contributes to the need for more administration.

Second, modern research needs a lot of people doing non-directly research adjacent stuff. Imagine looking at all the support people on an airbase, and saying why don’t we just cut them and let the pilots fly without all this logistics baggage.

jeffbee

High overhead indicates efficiency, not waste.

If you are Bozo University that has no grants, you also have no overhead, because everything you spend is attributable to that first grant. You spend $50 for tiny little flasks of liquid nitrogen. You buy paper at Staples.

If you are UCSF, you have 80% "overhead" because everything is centralized. Your LN2 is delivered by barge. You buy paper from International Paper, net 20, by the cubic meter. You have a central office that washes all the glassware. Your mouse experiments share veterinarians. All of this costs much, much less because of the "overhead".

comeonbro

If I understand you correctly, what you're claiming is:

University 1 gets $100. $10 of it goes to admin, $90 to researcher. Researcher spends $60 on supplies and equipment. This is accounted for as 10% administrative overhead.

University 2 gets $100. $20 of it goes to admin, $40 to researcher, $40 to supplies and equipment. This is accounted for as 60% administrative overhead.

Is this an accurate characterization of your claim?

mlyle

> University 2 gets $100. $20 of it goes to admin, $40 to researcher, $40 to supplies and equipment.

This is not how it works; this would be 150% overhead. ($60 / $40).

Basically, if something is a shared utility (common lab maintenance, supplies that can't be metered and charged to specific projects, libraries on campus, etc.) then it's overhead.

Also included in overhead is administrative & HR expenses... and things like institutional review boards, audit and documentation and legal services needed to show compliance with grant conditions.

The reasons for high overhead are threefold:

1. Self-serving administrative bloat at universities and labs. We all agree this is bad.

2. Shared services in complex research institutions (IRBs, equipment maintenance, supplies, facilities). This is good overhead. We want more of this stuff, though we want it to be efficiently spent, too.

3. Excessive requirements and conditions on grants that require a lot of bodies to look at them. This is bad, too, but doesn't get fixed by just lopping down the overhead number.

Unfortunately, if you just take overhead allowance away suddenly, I think it's just #2 which suffers, along with a general decrease in research. Getting rid of #1 and #3 is a more nuanced process requiring us to remove the incentives for administration growth on both the federal and university side.

largbae

I am trying to follow this...

if a grant is the same $1M and Bozo University gets to spend all million on the actual research at hand, but UCSF only gets 200K, how is UCSF more efficient?

Wouldn't the LN2 be traceable to the project either way as direct non-overhead cost, but UCSF efficiency makes that cost lower, achieving the same overhead ratio but either a lower grant cost or more researcher stipend?

tarlinian

Plenty of actual research costs count as overhead to avoid the need to hire an army of accountants to allocate every single bit of spend.

For example, the electricity costs of the lab in which the research is run would typically be paid for by the university and would be considered overhead. It's not "administrative bloat". Most of the particularly gross administrative bloat is on the undergraduate side of things where higher tuition costs have paid for more "activities".

forrestthewoods

59% is borderline criminal. Perhaps 15% is too low. But 59% is absurd and unacceptable.

linksnapzz

The Salk Institute's overhead rate, IIRC, is 90%. Yet, they keep getting funds, so they're doing something right.

forrestthewoods

Fraudulent orgs also keep getting funds. That don’t make it right.

aaronharnly

It’s worth clarifying that the 59% overhead rate doesnt mean 59% of the funds go to overhead. If you have a $1m grant, you add on $590k for overhead. Then the total grant is $1.59m, so actually 37% of the total funds are for overhead.

cute_boi

FYI, Overhead don't include everything. Even in remaining 49% there are many overheads :)

gnabgib

Related, unfortunately Penn to reduce graduate admissions, rescind acceptances amid research cuts (94 points, 2 hours ago, 78 comments) https://news.ycombinator.com/item?id=43144940

marcosfelt

This blog post gives some good context on why indirect rates exist and some more reasonable ideas for reforming the current system: https://goodscience.substack.com/p/indirect-costs-at-nih?utm...

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trostaft

Most departments at the moment are choosing to be conservative with their funds. No one really knows how their capacity, whether through grants or through teaching, is going to change. As far as I know, many universities are also pausing hiring for full-time employees (which is probably wise, at least until the dust settles). Really tough time to be looking for an academic appointment...

I'm grateful that I have enough funds to guarantee two more years here as a postdoc, but if things don't settle for the better there might not be a spot here anymore.

rKarpinski

U Pitt's endowment is 5.7 Billion! The funding cuts are big but it's only ~2% of the endowment, why are they pausing PHD admittance rather than using the resources they have readily available?

quink

The endowment as of June 30th 2023 was $5.5 billion. A year later it was $5.8 billion. If you add inflation and this spending cut alone, it has not grown.

Sure, it's "only ~2%", but surely I don't need to tell you how the money, meant to _persist in perpetuity_, a _237_ year old institution has accumulated to educate _30,000_ students is a different measure than an annual income? - a drop large enough to, as I pointed out above, no longer make it a viable sum of money in perpetuity?

Here I'm imagining you, sitting on let's say, $500,000 and thinking it's no problem if you spend _an extra_ $10,000 more every year, it's only 2%, and then wondering after a while where all the money to invest went, but where your money went entirely. I think rather than comment on a university's finances, better make sure yours are in order first because I suspect there's a troubling fundamental lack of financial literacy on display here that's going to come back to haunt you at some point.

wraaath

endowment per student for the top universities runs mid-7 figures for places like Princeton (3.75M), Yale (2.7M), MIT (2.1M) etc. The endowment per student for UPitt in 2023: 172k, which really doesn't give it a lot of wiggleroom to spend while maintaining the purchasing power of the gift endowments over time.

jauntywundrkind

Mike Caulfield says,

> If institutions don't push back together, they will cease to exist in the form they are now. I don't know how to say this more clearly.

And my heavens yes. This is the government threatening to end funding for universities. This movie here is no where anywhere near enough. This is an attempt to end the entire higher education system.

Does it need help & reform? Yes. But simply destroying education outright serves no good. This is a destruction of civilization by radical extremists. Universities need to be working together to defend against this mortal threat to the existence of higher education.

lvl155

Federal workers should just quit en masse to teach these guys a lesson. And make them hire back for 2x the salary.

fnordpiglet

Most people need their jobs to pay their rent and have health insurance and aren’t programmers with a LinkedIn inbox full of recruiters to draw on. They weren’t making a ton of money to begin with and many desperately need the job. Public service has nice long term benefits like a pension, but most federal employees are not well off by any measure.

I find people who feel glee at the suffering of these families disturbing.

johnnyanmac

If we could all group together, such a resignation wouldn't even last a day. It's the ultimate prisoners dilemma and we're slowly running out of options less drastic. everyone would benefit and few would lose their jobs compared to this still-fast slashing.

also, nitpick:

>aren’t programmers with a LinkedIn inbox full of recruiters to draw on.

It's not 2022 anymore. Those LinkedIn inboxes are empty for me. This market sucks.

dyauspitr

Wrong strategy for the time. These people don’t care about what is lost, they’re greedy individualists, they don’t care about the country.

johnnyanmac

It hasn't happened in America, but I think people severely underestimate how devastating a real strike can be. Remember that the ports strike in October only lasted 2 days but estimated costs were already in the 10 (or even 11) figures.

A full on government walkout for a day would fix a ton. They won't care, but even their voter base wouldn't ignore the late payments, cancelled appointments, and overall confusion a day would do.

dyauspitr

You’re wrong, their voter base would ignore everything short of their own children being killed. It’s tenacious smooth brain solidarity.

monero-xmr

Yes, do that! Quit ASAP!

iamleppert

Time for these universities to pick up the tab and run a sustainable business that isn’t dependent on government handouts. If their research is high quality and valuable, it will survive.

The current state of academia paper mills, unreproducible research and rampant fraud are a direct result of the spigot of money and lack of accountability.

johnnyanmac

There's a good reason Acedemia and Business should be as separate as possible. Do you think we would have been researching EV's if Oil got to fund grants?

Innovation isn't found by making faster horses, you can't treat tomorrows tech as you would yesterdays line budget.

ks2048

They are not “running a business”. The American research Universities have been reaping great rewards for relatively small investments.

klysm

Complete bullshit. Research is high risk and frequently 0 return. It’s fundamentally not a sustainable business. Is it worth doing still? I would say yes.

These actions by the government are fucking over people who have dedicated years of their lives to pursue advanced research degrees and academic careers.