Maya Sen, Professor of Public Policy at Harvard’s Kennedy School of Government, thinks the Trump administration’s insistence on a cap of 15% for “indirect costs” as part of all Federal research grants to colleges/universities is too low for too many such institutions; such caps should continue to be negotiated school by school. She insists, for instance, that Harvard needs its 69% cut of research grants for its indirect cost.

An across-the-board 15% cap, she insists, ignores any individualized considerations, leaving schools with higher costs in the lurch. And, she claims,

University research depends on federal money—11% of Harvard’s operating revenue comes from such grants.

Her alternative:

There’s a better solution than a blanket cap. Universities could instead commit to addressing administrative bloat and shoring up research integrity—both reasonable points that academics themselves have flagged.

Couple things about that. One is Harvard’s $53.2 billion endowment with its 2024 return on investment of 9.6%—a fairly typical ROI for Harvard; even if its yearly ROI varies quite a bit around that figure. That’s a lot of money carefully not being used for the school’s operating revenue, or its grant “indirect costs.”

The other is that proposed Universities could instead commit to addressing administrative bloat and shoring up research integrity. We’ve seen already the value of those commitments—empty virtue-signaling words in far too many cases. See for instance, Sen’s own Harvard and its refusal to enforce its commitment to protect Jewish students from Harvard’s population of pro-terrorist “students.”

Bonus thing regarding those schools with higher costs about which Sen worries being left in the lurch: any lurch is solely the product of those “higher cost” schools. They can straightforwardly cull their administrative bloat and adjust their spending allocations to deal with remaining costs. All that would take is a modicum of courage, with backbone injected via reduced revenues caused by reduced Federal froo-froo included in any research grants.

No. The administration’s across-the-board 15% cap needs to be implemented.