The Office of Management and Budget has adopted a policy limiting overhead expenses incurred in federally funded research to 26 percent and disallowing certain costs deemed inappropriate. Of 100 institutions receiving the most federal funds for research and development, 56 will lose money under the policy. Other reviews for reform also continue.…

An unusual conflict-of-interest case involving the federal government, a university researcher on ear infections, and the pharmaceutical industry has renewed the debate over what constitutes unacceptable conflict of interest, federal review of medical treatment, government protection against research bias, and disclosure of research project…

The National Security Council has barred the National Science Foundation from providing a grant to help finance American participation in East-West research because the federal government cannot control the research, causing the institute's supporters to seek money directly from Congress. (MSE)

A study found that a typical research university would raise its overhead rate significantly if it constructed a new building by borrowing or using its own money, but, if it won a congressional earmark, the overhead rate could decline slightly. This encourages colleges to seek construction money directly from Congress. (MSE)

The Public Health Service, under pressure to develop rules to prevent conflicts of interest in federally supported scientific research, is now considering regulation only in clinical trials of commercial products, a much narrower approach than last year's proposed regulation at all levels of research. (MSE)

The average rate for research overhead charges at major universities has declined nearly a point to 51% in the last three years, in the wake of stricter federal rules and intense political pressure. Largest reductions are at private institutions with the highest rates. (MSE)

Despite pressure from Congress and faculty, and a series of revisions in federal regulations, the average rate charged the government by universities for overhead for federally financed research appears remains high. Average rate for the top 100 research institutions is over 50%; most of the highest rates are at private institutions; all the…