If your R01 research project grant is reaching the end of its project period and you plan to continue the project, then you need to figure out your budget cap for the renewal application.
The two factors to guide your budget decision making for your R01 renewal are 1) the renewal cap and 2) how much money you will need to conduct your proposed research.
What is NIAID’s policy on budget caps?
NIAID caps renewals at 20 percent above the direct costs of the last competing award period. We calculate R01 renewal budget caps by taking the direct costs of the last noncompeting award minus costs of supplements, equipment, alterations and renovations, and facilities and administrative (F&A) amounts for all subawards and multiplying it against the cap figure.
In the example below, the original grant’s final year award amount is $200,000, and the budget cap is NIAID’s current 20 percent. That $200,000 includes a $45,000 administrative supplement and $5,000 that was spent on F&A costs on a subaward.
Example R01 20 percent cap calculation:
- Final year of original award of $200,000
- Subtract $5,000 (for subaward F&A) and $45,000 (for an administrative supplement)
- $200,000 - $50,000 = $150,000 (this is the direct cost multiplier for the 20 percent cap)
- $150,000 x 1.20 = $180,000 the amount of direct cost that can be requested in the renewal and not exceed the cap.
Each year, we list the renewal direct cost cap in our Financial Management Plan.
Notably, for this current fiscal year, NIAID is issuing competing awards with a 10 percent reduction from the approved amount (due to constraints in our budget). That does not change how you calculate your renewal cap. For a competing R01 renewal grant, NIAID will fund at 90 percent of approved funding level after applying the renewal budget cap.
What if I need more money?
If the scope of your research has evolved and you need additional funds, you could submit a new application (not a renewal) with Specific Aims that are different from your previous grant’s.
Another option—which you should consider only as a last resort—is to request a percent increase over the budget cap. Think hard before you pursue this option since it requires multiple approval steps, including concurrence from NIAID’s Advisory Council, as well as a strong justification and source of funds.
For a longer discussion of these considerations, read the Plan Your Renewal’s Budget section under Advice for a Successful Renewal.