The gap between the indirect costs of research reimbursed to US universities and the actual costs is wider than you suggest (Nature 515, 326–329; 2014). If we are to “keep the lights on” to do our research, we must reduce this gap.

For example, the University of South Florida's reimbursed indirect cost rate negotiated from federal funding was 49% of total direct research expenditure in 2013, whereas the actual rate was more than 54%; the recovery of indirect costs is even lower for many universities after all sources of external research funding are taken into account (K. A. Holbrook and P. R. Sanberg Technol. Innov. 15, 269–280; 2013).

Demands on institutional support for core facilities and for more-flexible funding schemes are likely to increase as university research becomes more transdisciplinary (see go.nature.com/uwu62q). Reducing the administrative burden by streamlining processes will help in meeting these demands.