ÃÛÌÒTV

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July 1, 2025

ÃÛÌÒTV faculty and staff,

In my
message on Tuesday June 17, I shared that there have been discussions at the federal level regarding federally negotiated facilities and administration (F&A) rates and indirect cost recovery (ICR). As I shared previously, we have seen a 15% cap on F&A proposed by multiple funding agencies. While the implementation of these caps has been stayed or is subject to temporary restraining orders, there are continuing conversations about potential changes to the currently negotiated F&A rates and associated implementation guidance. As part of these discussions, several national associations came together to form the Joint Associations Group (JAG) in order to take a close look at this issue and propose alternatives. To date, the JAG has put forward two potential F&A models and solicited feedback on these models from universities across the country. We anticipate that a third model will be released for examination sometime next week.

While we do not know what rate will ultimately be adopted, we anticipate that a change is coming. We will be asking deans and directors to take a preliminary look at what a lower F&A rate might look like, and solicit ideas around managing those changes. While the lower proposed F&A rates would present financial challenges, it is an opportunity to take a fresh look at how we operate and how we can evolve as a research institution. This moment encourages innovation, collaboration, and strategic alignment to ensure ÃÛÌÒTV remains strong and adaptable. The insights gathered through this preliminary request will help inform ÃÛÌÒTV’s response to align with institutional goals and priorities to support strategic discussions moving forward.

Recently, John Latini, the executive director of federal relations, held three listening sessions focused on NSF, NASA and the Department of Education. During these listening sessions he answered questions regarding federal impacts. There are plans for additional listening sessions to be held by the federal relations team. John is continuing to take feedback on potential impacts through the .

In addition, I will be holding another virtual forum on the federal landscape, where we will provide updates on federal action and answer questions, on Tuesday, July 15, from 8:30-9:30 a.m. In the meantime, if you have any questions, please reach out to your dean, director, vice chancellor, or the UA federal relations team. All updates are available on the .

Thank you for your continued engagement, and thanks for choosing ÃÛÌÒTV.

Dan White, chancellor

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