# Rules and Policies for Funding Consideration

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Recipients should be aware of a number of NIH and NINDS funding policies. Read below to learn more about each policy.

## Administrative Budget Cuts

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**NOTE: Administrative award reductions have changed in FY2024, reflecting NINDS' goal of maximizing the number of investigators funded under the FY 2024 appropriation level:**
Competing Funding Policies and Award Administrative Reductions - Salaries , stipends, and Training Funds are limited to the levels published by the NIH. We will reduce budgets when these caps are exceeded.  For additional information, see our  salary cap, stipends, and training funds  page.
- No inflationary increases are provided in calculating future year commitments. For more details about this and related funding policies, see our  Funding Policies  page.
- Specific administrative reductions will be made by mechanism based on the table below (NOTE - the administrative cuts below  do not apply  to awards funded with  specific appropriations  for  ALS ,  AD/ADRD , AIDS,  BRAIN , Common Fund, and  HEAL ):	 **Mechanism****Administrative Cut**R01 (Modular Budget)0%R01 (Non-Modular Budget)20.5%R03, R15, R210%R25/UE50%R13 or U130%F, T, and K mechanisms0%**All other mechanisms not listed here***3% 	  *this includes mechanisms that have not historically received administrative reductions	  
Noncompeting Award Funding Policies- When an application is funded, NIH agrees to provide funds over several years (for example, the typical NINDS R01 award is funded for five years).  Therefore, investigators request payment for the next budget period (usually, every year), but these requests do not compete with other applications.
- Non-competing awards made under the BRAIN Initiative are still being finalized for FY24
- All other non-competing awards will be made at  97% of the committed level  with the following exceptions which will be funded at 100%	   - F, T, and K mechanisms
  - R03, R21
  - R13 and U13
  - R16
  - R25
  - Diversity Supplement
  - SBIR/STTR mechanisms

## Inflationary Increases

Inflationary increases for future year commitments are not permitted. The NIH escalation policy applies to all cost categories (e.g., salaries/fringe, supplies, travel). Any justified reason for year-to-year increases within a budget category should be explained clearly in an applicant's budget justification.

## Salary Cap

Congress restricts the amount of direct salary paid to an individual under an HHS grant, cooperative agreement, or contract. Salary cap information for investigators and National Research Service Award (NRSA) stipend information for trainees can be found on the salary cap page. It is important to consult the latest salary cap and stipend levels when you prepare your grant application or contract proposal budget.

Your institution may only pay you beyond the NIH salary cap using non-federal funds. For historic levels, see NIH’s Salary Cap Summary (FY 1990-Present).

## Effort Requirements and Expectations

NINDS generally expects a minimum effort of 2.4 calendar months (or 20% effort) on an R01 or R01-equivalent Special Council Review (SCR) application. For multiple principal investigator (MPI) applications, effort is typically divided equitably among the PIs or in a manner that is appropriate for each PI's contribution to the project. The combined efforts of the PIs should meet or exceed 2.4 calendar months.

For some grant mechanisms such as the R35 and some K mechanisms, NINDS has specific expectations for the level of effort level required.  Review the NOFO you are applying to (particularly section III) for any eligibility requirements.

For more information, visit the Usage of Person Months FAQs page.

## Overlap: Types and Resolution

During the JIT Process, NINDS staff will review applications and JIT materials for the following kinds of overlap:
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Resolution of overlap normally occurs at the time of award in conjunction with applicant institution officials, the principal investigator, and NINDS staff. NINDS staff review Other Support and budget justifications (for modular applications) to determine if any overlap exists. If part of your research plan or scientific effort has already been paid for by NIH or another organization, NINDS will reduce the funding level accordingly.

## Special Council Review

For investigators who currently have $2 million total cost or more in funding, your pending applications will have to meet additional requirements. For additional information, visit the NINDS page on Special Council Review.

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