Message to College Deans from EVP and Provost Haggerty

February 08, 2025

Dear Deans,

I know that many of you are watching the news from last night that NIH has announced a cut to their F&A rate for all universities to a maximum of 15%.  As you know, our F&A rate is 50%; most other universities’ F&A rate is higher.  Senior LSU leadership is aware and are in communication with key contacts and leadership in DC about the consequences to LSU and to Louisiana.  Briefly, the total cost, if implemented, would be about $12 million per year across the system, with a little less than $3 million of that for LSU.  F&A pays for indirect costs of research, including utilities, building costs, library and administration. I expect that this will be blocked by the courts next week, but that block may only be temporary.

I imagine that some of you are being contacted by your faculty, staff and leadership.  Please feel free to let people know that LSU leadership is aware and is communicating about the consequences to those in positions to influence change.  And as communicated to campus yesterday, we have an Opportunities and Threats team working on contingency planning for this and other challenges.  We recognize that this is a stressful time for many and will do everything we can to protect LSU’s mission and its students, faculty and staff.

As I learn more, I will be in touch.