Notice NOT-OD-26-072, rescinds prior notices and advises that the $25,000 Modified Total Direct Costs (MTDC) threshold for outgoing subawards remains in effect. The previously communicated $50,000 MTDC threshold no longer applies to NIH awards. Refer to the May 12, 2026 OSP Blog regarding adjustments and changes.
Key Takeaways:
- Update proposal budgets immediately to reflect the $25,000 MTDC outgoing subaward threshold (NIH awards only).
- Use the $25,000 threshold for all NIH subawards.
- Review active NIH awards with start dates on or after 7/1/25 for potential over collection of indirect costs and work with your Research Finance contact on any adjustments.
- Continue using the $50,000 threshold for subawards for all other sponsors on new and competing awards issued on or after 7/1/25.
Questions? For budgeting, proposal preparation, and rebudgeting questions, reach out to your HMS ORA pre-award contact. For post-award questions, contact your rep in OSP Research Finance and HMS ORA Research Finance.