INFORMS Open Forum

Good afternoon -

Earlier this week, Elena and I participated in a session with peer STEM associations focused on the evolving landscape of indirect cost recovery in U.S. federal research grants.

As you may know, the Administration has proposed or attempted to implement a 15% cap on indirect cost reimbursement, citing the need for greater transparency and closer alignment with private-sector funding models. While nothing has been finalized, the direction is clear: the longstanding F&A cost structure is under increasing scrutiny and is highly unlikely to remain unchanged.

In response, the research community has developed a proactive alternative: the Financial Accountability in Research (FAIR) Model, led by the Joint Associations Group (JAG) in collaboration with a broad coalition of institutions, federal agencies, and private funders.

The FAIR Model is designed to:

• Create a clearer and more accountable cost structure for federally funded research
• Move away from outdated "indirect/direct" terminology toward cost components tied to actual project needs
• Offer two institutional pathways-Expanded (detailed, project-specific costs) and Base (fixed-percentage approach)
• Align with evolving expectations around transparency, while maintaining flexibility across institution types

• To learn more, visit the JAG resource page: https://linktr.ee/JAGTownHall
• If the FAIR Model resonates with you, consider sharing your perspective with your congressional representatives (you can use the INFORMS Advocacy Toolkit as a guide for engaging with your representatives) 
• If your university or organization seeks your input, we encourage thoughtful consideration

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Jeffrey M. Cohen, MBA
Chief Strategy Officer
INFORMS
jcohen@informs.org
linkedin.com/in/jmcsc
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This is going to cause a little confusion is there is an established FAIR Quantitative Information Risk Management | The FAIR Institute

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Brian Putt
Decision Scientist Consultant
retired
Fremont CA
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Original Message:
Sent: 08-27-2025 16:21
From: Jeffrey M. Cohen
Subject: FAIR Model: A New Approach to Indirect Costs in Federal Research

Good afternoon -

Earlier this week, Elena and I participated in a session with peer STEM associations focused on the evolving landscape of indirect cost recovery in U.S. federal research grants.

As you may know, the Administration has proposed or attempted to implement a 15% cap on indirect cost reimbursement, citing the need for greater transparency and closer alignment with private-sector funding models. While nothing has been finalized, the direction is clear: the longstanding F&A cost structure is under increasing scrutiny and is highly unlikely to remain unchanged.

In response, the research community has developed a proactive alternative: the Financial Accountability in Research (FAIR) Model, led by the Joint Associations Group (JAG) in collaboration with a broad coalition of institutions, federal agencies, and private funders.

The FAIR Model is designed to:

• Create a clearer and more accountable cost structure for federally funded research
• Move away from outdated "indirect/direct" terminology toward cost components tied to actual project needs
• Offer two institutional pathways-Expanded (detailed, project-specific costs) and Base (fixed-percentage approach)
• Align with evolving expectations around transparency, while maintaining flexibility across institution types

While INFORMS is not a member of JAG and has not taken an official position on the FAIR Model, we believe it is important to keep our members informed.

What you can do:

• To learn more, visit the JAG resource page: https://linktr.ee/JAGTownHall
• If the FAIR Model resonates with you, consider sharing your perspective with your congressional representatives (you can use the INFORMS Advocacy Toolkit as a guide for engaging with your representatives) 
• If your university or organization seeks your input, we encourage thoughtful consideration

Please feel free to reach out to me with any questions or concerns.

Jeff

------------------------------
Jeffrey M. Cohen, MBA
Chief Strategy Officer
INFORMS
jcohen@informs.org
linkedin.com/in/jmcsc
------------------------------