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Indirect costs include overhead costs of maintaining buildings housing labs and general administration expenses.

“Indirect costs are the way the government invests in research infrastructure for the nation and are vital to our research activities,” said campus message signed by Provost Jenny Martinez, medical school dean Dr. Lloyd Minor and Vice Provost and Dean of Research David Studdert.

Indirect costs cover items outside of salaries, travel, supplies and other direct expenses.

The indirect costs are negotiated between the university and the federal government — typically every three or four years for UC campuses — which is why the change surprised scientists.

The American Council on Education said in a statement that the grant funding for indirect costs have allowed universities to maintain "cutting-edge laboratories" and advanced technologies needed to stay ahead of foreign competitors and deliver breakthroughs in research.