Indirect cost recovery changes for fiscal year 2024

Attention Principal Investigators: UC Santa Cruz recently updated its federal Facilities and Administration (F&A) agreement approving indirect cost recovery rates for sponsored contracts and grants. 

The new agreement approves updated indirect cost rates through June of 2026 for each activity type, including a slight escalation annually over the next three years for organized research.

The federally negotiated rate for organized research at the UC Santa Cruz campus is now 55% for FY23 and FY24 and will increase to 56% as of 7/1/2024. 

The updated rates are being applied to new proposals only. Pre-existing awards and pending proposals will continue to have indirect costs at the rate applied at the time of submission.

More information about the indirect cost policy and rates can be found on the Office of Research website. Please direct any questions to