research proposal cost budget

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How to plan and write a budget for research grant proposal?

Medical research can have an enormous positive impact on human health. Health research improves the quality of human lives and society which plays a vital role in social and economic development of the nation. Financial support is crucial for research. However, winning a research grant is a difficult task. A successful grant-winning application requires two key elements: one is an innovative research problem with best probable idea/plan for tackling it and appropriate planning of budget. The aim of the present paper is to give an insight on funding agencies providing funding for health research including traditional Indian medicine (from an Indian perspective) and key points for planning and writing budget section of a grant application.

1. Introduction

Why health science research is important and why should it to be funded? Science and technology innovations and health research can have an enormous impact on human health. They improve public health, quality of human lives, longevity and have made society better [1] , [2] . Healthy humans with better quality of life are crucial for the social and economical development of the nation [3] . Medical research led to the expansion of knowledge about health problems/conditions and their mechanism, risk factors, outcomes of treatments or interventions, preventive measures and proper management. Clinical studies or trials provide important information about the safety and efficacy of a drug/intervention. Innovative basic science research had led to the discovery of new technology, efficient diagnostic and therapeutic devices. So, currently, an effort with multidisciplinary approach is a demand for better understanding of clinical conditions and providing safest health care to the community [2] , [4] .

Whether it is basic or applied, clinical or non-clinical, all research needs financial support. Considering the importance of research in economic growth of a nation, many countries are increasing their budget for research and development in science. A study on impact of GDP (Gross Domestic Product) on research and development in science among Asian countries has found that one who spends more on research has more research outcomes in the form of total number of research documents, citations per documents and h-index [5] . About 95% of the NIH (National Institutes of Health, USA), budget goes directly to research awards, programs, and centers; training programs; and research and development contracts [6] . Total expenditure carried out for research in India is too less than USA and China. Percentage of GDP for research and development in India is 0.88%, while South Korea, USA and China have 4.292%, 2.742 and 2.1% respectively [7] .

Owing to the increasing competition among the researchers, especially the young ones, for their academic growth, preparing and planning a winning research proposal becomes very essential. A successful grant-winning application requires two key elements: (1) innovative research problem with best probable idea/plan for tackling it and (2) appropriate planning of budget. The aim of the present paper is to give an insight on funding agencies (from an Indian perspective) and key points for planning and writing budget section of a grant application.

2. What is the purpose of the budget plan in a grant application?

A budget is the quantitative expression of a financial plan for future expenses on the project in a given period of time [8] . Budget plan is a key element of a grant application. It demonstrates the required cost for the proposed project. It is a prediction of expenses and serves a plan for funders on how the organization will operate the project, spend the money in a given set of period and where their money will go. It shows the funders exactly what they can support and also helps the institution and investigating team in management of the project. Moreover, budget plan requires for accountability [9] .

3. Which are the funding agencies that sponsor health research in India?

Various national and international sponsoring agencies have identified health problems of priority for funding a research. Some of the leading funding agencies providing grant for health research including alternative systems of medicine in India are given in Table 1 . State Universities/deemed Universities also have a provision of funding for medical research.

Table 1

List of funding agencies those promote health research.

4. What constitutes a research project budget?

Proforma of the research grant applications and presentation of budget section may vary among the sponsoring agencies. However, major parts of budget plan in the applications of the above mentioned funding agencies are quite similar. The budget section is broadly divided into two categories: direct and indirect costs.

4.1. Direct costs:

These are the costs incurred specifically to carry out a project [10] . Direct costs include expenses towards personnel, materials, equipments, consumables and travel. These particulars are further categorized into recurring and non-recurring expenses on the basis of their occurrence during the study period. A brief description of the sub-sections under direct cost is given below:

4.1.1. Personnel:

Budget for personnel can be mentioned in this section in case human resources are required for the study and as per funding agency guidelines. Salaries with allowances can be budgeted for human resources such as site manager, research assistant, junior research fellow (JRF), senior research fellow (SRF), research associate, technician, data entry operator and attender. Most of the Indian funding agencies do not have a provision for salaries for the principal investigator (PI) and co-investigators (Co-PI). Ministry of AYUSH [11] and Rajiv Gandhi University of Health Science (RGUHS), Karnataka [12] provide one-time minimal fees for investigators and supporting staff respectively. There is a provision for salaries of investigators in Wellcome trust-DBT India alliance grants [13] .

4.1.2. Recurring expenses:

Recurring expenses are those which are variable and which keep on occurring throughout the entire project duration. Particulars categorized in this category are consumables, chemicals, glasswares, laboratory test charges, diagnostic kits, stationery, prints, photocopies, communication, postage, telephone charges, survey tools, questionnaires, publication charges, reprints, binding etc. Other expenses could be allowances for patients/participants, food charges and physician fees.

4.1.3. Non-recurring expenses:

Non-recurring expenses are those which are one-time in nature or which do not recur at regular intervals. Particulars included in this category are equipments or instruments with its accessories, software's, computer, printer, electrical and electronic items and accessories of the existing instrument in your lab. Percentage of budget allocated for equipment varies among the funding agencies from 25% to 90% of the entire budget. Some of the agencies do not have provision for equipment in budget. Vision Group on Science and Technology allocated their maximum grant (up to 90%) for development of infrastructure of laboratories [14] .

4.1.4. Traveling expenses:

Budget allocated for traveling can be used for attending meetings, conferences, workshops and training programs. Foreign travel is not allowed by any Indian funding agency. Traveling expenses for collection of data, survey and visit to other centers in multicentric study can be budgeted in this sub-section.

4.2. Indirect costs:

These are the costs which cannot be directly attributed to specific expenses of a project, but are required to run a project. It is also termed as overhead charges. Laboratory, electricity, water, library and other facilities are provided by the institution to run a proposed research project. Therefore, a fixed cost (usually) of about 5–15% of the total budget is provisioned as institutional overhead charges which goes to the institution directly. The range may, however, be flexible on the basis of the type of funding agency.

5. Budget justification

Most of the funding agencies require submission of a budget justification with all the items described above. Sometimes it is also called as budget narrative. Explanation of need for each line item in the budget with item-wise and year-wise breakdown has to be provided. Quantification of total costs of each line-item and document cost calculation should be done. When writing a budget justification, it is important to follow the same order as that in an itemized budget. For example, if equipment such as color doppler is required, then justify the need of a device with respect to the proposed methodology of the study. Similarly, for non-recurring expenses, breakdown the consumables item-wise and year-wise with its cost and calculation according to the protocol of the study and justify accordingly.

6. Budget summary

An item-wise and year wise summary of the total budget is usually required in most of the applications. Budget summary outlines the proposed grant and often (most of the format) appears at the beginning of the proposal. It should always be prepared at the end, after the grant proposal has been completely developed. A sample budget summary (as an example) for a proposed study for the duration of three years is shown in Table 2 . In the personnel section, a research fellow salary with allowances is budgeted year-wise. The salary of the research fellow for the first and second year is Rs. 2,30,000 per year (JRF) with an enhancement to Rs 2, 59,000 for the third year (SRF) as per the guidelines of the funding agency. As non-recurring expenses are one time in nature, a budget for equipment was budgeted only for the first year. Under the section of recurring expenses, more budgets are allocated in the second year for consumables because recruitment of subjects in large number will be done during the second year of the proposed study. Similarly, expenses toward travel, investigator fee and other miscellaneous costs year-wise have been budgeted. The emoluments and guidelines on service conditions for research personnel employed in research project by ICMR has been given in reference section [15] , [16] .

Table 2

Sample budget summary (year wise).

7. How to plan a simple research budget?

Planning of the research budget begins with an innovative research question, objectives and design of the study. Before starting to write a budget plan, it is essential to understand the expectations of funding agencies, University/Institute and the team of researchers. It is imperative to keep in mind that the research proposal will be reviewed by both scientific and financial (non-scientific) experts. Hence, the proposal should be prepared in such a way that it can be easily understood by even non-scientific experts.

Firstly, a list of what is essential and would add value for research such as focus of research, primary and secondary outcomes of the study, the source of the sample, study setting, sample design and sample size, techniques used to collect data, method of data analysis and available resources should be made [17] .

Secondly, the instructions, format of the application and rules of the funding agency should be read thoroughly. Budget specifications, limitations of recurring and non-recurring costs, and necessity of budget justification with cost breakdown should be checked. Note that one should not deviate or modify the proforma of the funding agency.

Thirdly, a list of items should be made and categorized into recurring and non-recurring expenses. Breakdown of the budget into item-wise and year-wise with cost calculation should be done. It should be ensured that costs are reasonable, allowable and related to the research proposal, so that the budget appears realistic. Travel expenses should be calculated as per the rules of the funding agency.

Fourthly, item-wise and year-wise justification of the requirement in a same sequence of format should be provided. A well-justified budget can enhance the evaluation of the research proposal by reviewers and funding body.

The last most important part is to review the budget and verify the costs and calculation. It is better, if other research team members can review the budget plan and re-calculate the costs thoroughly. Remember, too high budget and too low budget with respect to the research proposal are suspicious and chances of receiving a grant are less.

Sources of funding

Conflict of interest.

Peer review under responsibility of Transdisciplinary University, Bangalore.

As the nation’s largest public research university, the Office of the Vice President for Research (OVPR) aims to catalyze, support and safeguard U-M research and scholarship activity.

The Office of the Vice President for Research oversees a variety of interdisciplinary units that collaborate with faculty, staff, students and external partners to catalyze, support and safeguard research and scholarship activity.

ORSP manages pre-award and some post-award research activity for U-M. We review contracts for sponsored projects applying regulatory, statutory and organizational knowledge to balance the university's mission, the sponsor's objectives, and the investigator's intellectual pursuits.

Ethics and compliance in research covers a broad range of activity from general guidelines about conducting research responsibly to specific regulations governing a type of research (e.g., human subjects research, export controls, conflict of interest).

eResearch is U-M's site for electronic research administration. Access: Regulatory Management (for IRB or IBC rDNA applications); Proposal Management (eRPM) for the e-routing, approval, and submission of proposals (PAFs) and Unfunded Agreements (UFAs) to external entities); and Animal Management (for IACUC protocols and ULAM).

Sponsored Programs manages the post-award financial activities of U-M's research enterprise and other sponsored activities to ensure compliance with applicable federal, state, and local laws as well as sponsor regulations. The Office of Contract Administration (OCA) is also part of the Office of Finance - Sponsored Programs.

• Develop Proposal Overview
• Blue Pages: Find an RA
• Cost Accounting Standards
• Budget Table Sample
• Direct vs. F&A Costs
• Direct Costs Other Than Salaries
• Facilities & Administrative Rates
• Full Recovery of F&A Costs - Calculating Space
• NRSA Stipend Levels and GSRA Max
• NIH Modular Budgets
• Participant Support Costs
• Salaries in Sponsored Projects

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• Uniform Guidance Monitored Costs
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• OVPR Cost Sharing
• About the University of Michigan
• NIH - Other Support Reporting
• NSF and Other Sponsors - Current and Pending Support
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• Budget & Cost Resources
• UG Monitored Costs
• Direct and Indirect Costs
• Indirect Cost Rates
• Full Recovery of Indirect Costs  - Calculating space for certain private sponsor
• Direct Costs  (other than salaries)
• ​ Staff Fringe Benefits
• GSRA Cost Estimates

The Principal Investigator has primary responsibility for budget planning, in consultation with the department chair or director of the research unit. Budgets for all sponsored proposals are subject to review by ORSP.  

A Special Note About NIH Grant-Related Data Sharing Costs

Certain funding agencies (e.g. the National Institutes of Health (NIH)) are increasingly allowing data management and sharing (DMS) costs to be included as direct costs in proposal budgets.

NIH DMS costs should be shared in the appropriate cost category, e.g., personnel, equipment, supplies, and other expenses, following the instructions and providing details as instructed within the applicable form (e.g., R&R Budget Form or PHS 398 Modular Budget Form). 

In most cases, the DMS Plan oversight at U-M will be provided by the principal investigator (PI) and other study personnel. If help is needed, consider these resources:

• OVPR Research Data Stewardship page - NIH DMSP resources
• U-M Library - Research Guides - Research Data Management
• U-M Navigate Webinar - NIH Data Management & Sharing Policy (Nov 1, 2022)

Budget Format

Sponsors often prescribe the budget format that must accompany the proposal, including the specific cost categories that should be identified. The format shown on the sample budget page may be used, however, if one is not specified by the sponsor. Be sure to check with your department, unit, school or college administrator to determine the best practice.

The budget should be subdivided into periods of 12-month duration (unless partial year funding is anticipated). A "starting date" should be specified, since it is essential to ensure accurate budget calculations. If cost-sharing is included, each budget period should include columns for both "Sponsor" and "University" costs. A budget summary should be included for proposals with multi-year funding. All budget entries should be rounded to the nearest whole dollar.

Salary and Wages

The salary category in the proposed budget should include the names and/or titles for all personnel involved in the project. The number of person months or percent effort to be applied to the project should also be shown. Total salary costs can be determined by applying the percentage of effort to the current salary rates. An appropriate escalation rate (e.g., 3%) should be used to determine salary requirements beyond the current fiscal year. While standard percentages are applied to make these calculations, no commitment and no constraint on the rate of increase for a given individual is implied by this procedure.

If a faculty member is working on several sponsored projects, care must be exercised to ensure that no more than 100 percent of effort is committed to the aggregate of all projects and other University responsibilities.

Summer salary:

Summer salary for faculty with academic year (AY) appointments can be figured at one-ninth of their institutional base salary for each month of summer effort. A maximum of two and one-half months may be included for the whole summer. Some sponsors, however, impose specific limitations on summer salaries. The National Science Foundation, for example, usually will not pay for more than two months of summer research at a rate of one-ninth of the AY salary per month.

Technical staff

Costs incurred for the same purpose in like circumstances must be treated consistently. For example, salaries of technical staff should be treated as direct costs wherever the work to be undertaken can be identified with a particular sponsored project. Direct charging of these costs may be accomplished by specifying individual positions within the project budget or through the use of recharge rates or specialized service facilities, as appropriate under the circumstances.

Administrative and clerical support

The salaries of administrative and clerical support staff normally should be treated as indirect costs . However, it may be appropriate to charge these costs directly to a sponsored project when the participation of the administrative/clerical staff being charged to a federal project meet all four of the following conditions as set forth in §200.413 of the Uniform Guidance:

“(1) Administrative or clerical services are integral to a project or activity;

(2) Individuals involved can be specifically identified with the project or activity;

(3) Such costs are explicitly included in the budget or have the prior written approval of the Federal awarding agency; and

(4) The costs are not also recovered as indirect costs.”

The meaning of (4) is the same as that of 200.403(d) above. That is to say, the project must require support services beyond the normal scope necessary for the typical sponsored project (i.e., it is an unlike circumstance).

Personnel may be hired to work on a sponsored project on an hourly basis for periods up to 12 months. Individuals hired on this basis receive no staff benefits other than Social Security and should be advised accordingly. The Personnel Service Center should be consulted to obtain the appropriate hourly rates for various categories of employment.

Staff benefits are charged to sponsored project accounts on a real cost basis. Depending on the mix of personnel assigned to the project, the staff benefit rate may show significant variation. While it may be possible to apply an average benefit rate (30%), it may be more appropriate in some situations to calculate the staff benefits on an employee-by-employee basis. The range of applicable benefit rates are provided in Staff Benefits Table .

GSRA Compensation, Tuition, and Benefits

GSRA Cost Estimates are for budget estimating purposes only and may vary from school to school. A GSRA appointment may be held from May through August, even though the GSRA is not enrolled in the University during that time. If the appointment is for the winter and fall terms, the fringe benefit charges should be budgeted for the full year, since the student is eligible for coverage during the intervening summer even though he or she is not on a GSRA appointment at that time.

The non-resident tuition differential is provided by the University for out-of-state students appointed as GSRAs. In-state tuition should be charged to sponsored accounts for GSRAs with appointments of 25% or greater. However, Schools and Colleges may provide tuition fellowships to cover a portion of the in-state tuition for GSRAs (see GSRA Cost Estimates ). The portion of the in-state tuition that remains after the fellowship is applied must be included on the grant as a charge to the sponsor.

In-state tuition charges should not be included as part of the GSRA stipend. The modified total direct cost (MTDC) base on which the University's indirect cost rate is calculated must exclude tuition charges. Therefore, indirect costs are not recoverable on tuition charges included in proposals for which the indirect cost rate is based on MTDC. Please contact the appropriate ORSP Project Representative should you have any questions.

Consumable Supplies and Materials

Consumable supplies are items used exclusively in support of project objectives. If it can be demonstrated that such supplies are used only in the conduct of the project and not for other purposes and are consumed completely in the course of the project, such items can be included as direct costs. Laboratory supplies, laboratory notebooks, printer paper for research data and reports, and so forth usually can be justified as consumable supplies. However, when supply items are purchased to support the multiple activities of project personnel, they are considered office supplies and cannot be charged directly to federal funds. Such items would include University stationary, pens, tablets, file folders, staples, paper clips, etc.

The estimated costs of consumable supplies and materials should be indicated in the proposed budget. It is generally acceptable to sponsors to provide a breakdown of supplies and materials by broad categories as opposed to the detailed listing of individual items. Contracts awarded by industries holding a prime contract with a federal agency, however, may require detailed itemization of supplies.

Major items of equipment proposed for acquisition should be itemized by descriptive name and estimated cost, and an adequate justification should be provided in the proposal narrative. Items costing less than $5000 or with a useful life expectancy of less than one year normally should be included under "Supplies and Materials." Shipping and/or installation charges associated with equipment acquisitions should be included in the cost estimates but generally are not itemized.

Specialized Services

Charges for computing services should be budgeted whenever these costs are justified. It is essential, however, that the budget clearly differentiate between central computing services provided by Information Technology Services and other computing services.

Other specialized service centers that have an approved user rate should be included in the proposed budget on a cost basis that reflects the recharge rates with the anticipated number of hours or other units of service clearly indicated. Once established, the schedule of rates must be applied to all users of the services/facilities, including internal-university users. Recharge rates are designed to recover, over the long term, not more than the aggregate cost of the services provided. The recharge/user rate should be included as part of the modified total direct cost (MTDC) for the project and should carry the appropriate indirect cost rate .

Consultants and Subcontracts

Federal agencies frequently establish a maximum daily rate of pay for consultants--specific dollar limits for various agencies are available from ORSP. The University must enter into a formal agreement with the consultant prior to the initiation of his or her effort. Consultant agreements as subject to the full recovery of indirect costs at the rate applicable to other direct cost items in the proposed budget.

The entire cost of a subcontract is normally shown as a single line item under "Other Direct Costs." A formal proposal from the subcontractor--including a statement of work, a detailed budget, period of performance, and key personnel--should be included to support this cost element. The Project Director should provide an explanation of why and how the proposed sub-contractor was selected, including the number of bids obtained.

Subcontracted effort requires a formal agreement between the University and the subcontractor, signed by a University official authorized to enter into contractual agreements on behalf of the Board of Regents. See: the Subcontracts and Hybrid Purchase Orders web page for criteria and procedures. Indirect costs are recovered on the first $25,000 of each subcontract.

Indirect Costs

Indirect costs are real costs of University operations that are not readily assignable to a particular project. The sample budget illustrates the procedures for applying the indirect cost rate .

Human Subject Fees

Human subjects often are paid a fee for their participation in research projects. Protocols for the use of human beings in research, teaching, or testing are reviewed and approved, according to federal, state and university policies. (See: Human Research Protection Program )

Other Costs

Funds may be requested from the sponsor to cover travel costs associated with the proposed project. Sponsors often require a breakdown of such travel costs by trip, reflecting the purpose, point of travel, number of persons, number of days, air fare, lodging and meal costs (per diem), and so forth. If foreign travel is contemplated, the proposal should include relevant information (including names of countries to be visited) and justification. Some sponsors have special regulations (e.g., use of domestic air carriers) governing foreign travel.

Costs of preparing and publishing reports of project results should be included in proposed budgets. Since page charges often are billed well after the completion of the research, it may be necessary to secure time extensions to pay these charges prior to the time that the project is closed out.

Other anticipated direct costs should be itemized--for example, equipment rental, maintenance agreements, or off-campus space rental. Telephone services and postage should not be included unless these costs are expected to be major elements in the project (e.g., telephone surveys). "Miscellaneous" or "contingency" categories should not be included. Items normally considered indirect costs should not be included in the proposed budget unless they are extraordinary and for unlike circumstances (e.g., utility costs required to operate a high-energy particle accelerator).

Network costs, including the hardware, software, personnel services, public access sites, and other related costs required to enable University personnel to share software or data or to communicate electronically with other individuals, are generally considered to be part of the physical infrastructure of the University and should not be included as direct costs in the proposal budget, as these costs are indirect in nature and included as a component of the Facilities & Administrative rate. However, individual workstations and specialized hardware and software attached to the network, which are not available to all users, are not included as part of the network costs and therefore may be treated as direct costs and recovered from sponsored projects through the use of approved recharge rates.

Questions regarding the appropriate treatment of network costs as either direct costs or Facilities & Administrative costs in proposal budgets should be forwarded to the Office of Research and Sponsored Projects.

References and Resources

• Direct Cost Other than Salaries
• Graduate Student Salaries (GSRAs)
• Staff Fringe Benefits
• Find Extended Sick Salary Transfer Request forms for those not in Time/Labor System
• Rackham Cost Sharing for Federal Training Grants
• Sample Budget Table
• Contact your unit-level research administrator  for the best practices for your department, school, college, or unit.
• Contact your ORSP Project Representative regarding any questions about University policies and procedures.
• Contact the  Office of Contract Administration  for further information on subcontracts and consulting agreements.
• For information on how to pay human subjects, please see the  Treasurer's Office requester/study-coordinator resources  and the  HSIP (Human Subject Incentive Program .
• Budget Reallocation Process (formerly 7471)
• Direct Costs
• Facilities and Administrative Costs (F&A)
• HSIP (Human Subjects Incentives Program)

The Research Whisperer

Just like the thesis whisperer – but with more money, how to make a simple research budget.

Every research project needs a budget*.

If you are applying for funding, you must say what you are planning to spend that funding on. More than that, you need to show how spending that money will help you to answer your research question .

So, developing the budget is the perfect time to plan your project clearly . A good budget shows the assessors that you have thought about your research in detail and, if it is done well, it can serve as a great, convincing overview of the project.

Here are five steps to create a simple budget for your research project.

1. List your activities

Make a list of everything that you plan to do in the project, and who is going to do it.

Take your methodology and turn it into a step-by-step plan. Have you said that you will interview 50 people? Write it on your list.

Are you performing statistical analysis on your sample?  Write it down.

Think through the implications of what you are going to do. Do you need to use a Thingatron? Note down that you will need to buy it, install it, and commission it.

What about travel? Write down each trip separately. Be specific. You can’t just go to ‘South East Asia’ to do fieldwork. You need to go to Kuala Lumpur to interview X number of people over Y weeks, then the same again for Singapore and Jakarta.

Your budget list might look like this:

• I’m going to do 10 interviews in Kuala Lumpur; 10 interviews in Singapore; 10 interviews in Jakarta by me.
• I’ll need teaching release for three months for fieldwork.
• I’ll need Flights to KL, Singapore, Jakarta and back to Melbourne.
• I’ll need Accommodation for a month in each place, plus per diem.
• The transcription service will transcribe the 30 interviews.
• I’ll analysis the transcribed results. (No teaching release required – I’ll do it in my meagre research time allowance.)
• I’ll need a Thingatron X32C to do the trials.
• Thing Inc will need to install the Thingatron. (I wonder how long that will take.)
• The research assistant will do three trials a month with the Thingatron.
• I’ll need to hire a research assistant (1 day per week for a year at Level B1.)
• The research assistant will do the statistical analysis of the Thingatron results.
• I’ll do the writing up in my research allowance time.

By the end, you should feel like you have thought through the entire project in detail. You should be able to walk someone else through the project, so grab a critical friend and read the list to them. If they ask questions, write down the answers.

This will help you to get to the level of specificity you need for the next step.

2. Check the rules again

You’ve already read the funding rules, right? If not, go and read them now – I’ll wait right here until you get back.

Once you’ve listed everything you want to do, go back and read the specific rules for budgets again. What is and isn’t allowed? The funding scheme won’t pay for equipment – you’ll need to fund your Thingatron from somewhere else. Cross it off.

Some schemes won’t fund people. Others won’t fund travel. It is important to know what you need for your project. It is just as important to know what you can include in the application that you are writing right now.

Most funding schemes won’t fund infrastructure (like building costs) and other things that aren’t directly related to the project. Some will, though. If they do, you should include overheads (i.e. the general costs that your organisation needs to keep running). This includes the cost of basics like power and lighting; desks and chairs; and cleaners and security staff. It also includes service areas like the university library. Ask your finance officer for help with this. Often, it is a percentage of the overall cost of the project.

If you are hiring people, don’t forget to use the right salary rate and include salary on-costs. These are the extra costs that an organisation has to pay for an employee, but that doesn’t appear in their pay check. This might include things like superannuation, leave loading, insurance, and payroll tax. Once again, your finance officer can help with this.

Your budget list might now look like this:

• 10 interviews in Kuala Lumpur; 10 interviews in Singapore; 10 interviews in Jakarta by me.
• Teaching release for three months for fieldwork.
• Flights to KL, Singapore, Jakarta and back to Melbourne.
• Accommodation for a month in each place, plus per diem, plus travel insurance (rule 3F).
• Transcription of 30 interviews, by the transcription service.
• Analysis of transcribed results, by me. No teaching release required.
• Purchase and install Thingatron X32C, by Thing Inc . Not allowed by rule 3C . Organise access to Thingatron via partner organistion – this is an in-kind contribution to the project.
• Three trials a month with Thingatron, by research assistant.
• Statistical analysis of Thingatron results, by research assistant.
• Research assistant: 1 day per week for a year at Level B1, plus 25.91% salary on-costs.
• Overheads at 125% of total cash request, as per rule 3H.

3. Cost each item

For each item on your list, find a reasonable cost for it . Are you going to interview the fifty people and do the statistical analysis yourself? If so, do you need time release from teaching? How much time? What is your salary for that period of time, or how much will it cost to hire a replacement? Don’t forget any hidden costs, like salary on-costs.

If you aren’t going to do the work yourself, work out how long you need a research assistant for. Be realistic. Work out what level you want to employ them at, and find out how much that costs.

How much is your Thingatron going to cost? Sometimes, you can just look that stuff up on the web. Other times, you’ll need to ring a supplier, particularly if there are delivery and installation costs.

Jump on a travel website and find reasonable costs for travel to Kuala Lumpur and the other places. Find accommodation costs for the period that you are planning to stay, and work out living expenses. Your university, or your government, may have per diem rates for travel like this.

Make a note of where you got each of your estimates from. This will be handy later, when you write the budget justification.

• 10 interviews in Kuala Lumpur; 10 interviews in Singapore; 10 interviews in Jakarta by me (see below for travel costs).
• Teaching release for three months for fieldwork = $25,342 – advice from finance officer.
• Flights to KL ($775), Singapore ($564), Jakarta ($726), Melbourne ($535) – Blue Sky airlines, return economy.
• Accommodation for a month in each place (KL: $3,500; Sing: $4,245; Jak: $2,750 – long stay, three star accommodation as per TripAdviser).
• Per diem for three months (60 days x $125 per day – University travel rules).
• Travel insurance (rule 3F): $145 – University travel insurance calculator .
• Transcription of 30 interviews, by the transcription service: 30 interviews x 60 minutes per interview x $2.75 per minute – Quote from transcription service, accented voices rate.
• Analysis of transcribed results, by me. No teaching release required. (In-kind contribution of university worth $2,112 for one week of my time – advice from finance officer ).
• Purchase and install Thingatron X32C, by Thing Inc . Not allowed by rule 3C. Organise access to Thingatron via partner organistion – this is an in-kind contribution to the project. ($2,435 in-kind – quote from partner organisation, at ‘favoured client’ rate.)
• Research assistant: 1 day per week for a year at Level B1, plus 25.91% salary on-costs. $12,456 – advice from finance officer.

Things are getting messy, but the next step will tidy it up.

4. Put it in a spreadsheet

Some people work naturally in spreadsheets (like Excel). Others don’t. If you don’t like Excel, tough. You are going to be doing research budgets for the rest of your research life.

When you are working with budgets, a spreadsheet is the right tool for the job, so learn to use it! Learn enough to construct a simple budget – adding things up and multiplying things together will get you through most of it. Go and do a course if you have to.

For a start, your spreadsheet will multiply things like 7 days in Kuala Lumpur at $89.52 per day, and it will also add up all of your sub-totals for you.

If your budget doesn’t add up properly (because, for example, you constructed it as a table in Word), two things will happen. First, you will look foolish. Secondly, and more importantly, people will lose confidence in all your other numbers, too. If your total is wrong, they will start to question the validity of the rest of your budget. You don’t want that.

If you are shy of maths, then Excel is your friend. It will do most of the heavy lifting for you.

For this exercise, the trick is to put each number on a new line. Here is how it might look.

5. Justify it

Accompanying every budget is a budget justification. For each item in your budget, you need to answer two questions:

• Why do you need this money?
• Where did you get your figures from?

The budget justification links your budget to your project plan and back again. Everything item in your budget should be listed in your budget justification, so take the list from your budget and paste it into your budget justification.

For each item, give a short paragraph that says why you need it. Refer back to the project plan and expand on what is there. For example, if you have listed a research assistant in your application, this is a perfect opportunity to say what the research assistant will be doing.

Also, for each item, show where you got your figures from. For a research assistant, this might mean talking about the level of responsibility required, so people can understand why you chose the salary level. For a flight, it might be as easy as saying: “Blue Sky airlines economy return flight.”

Here is an example for just one aspect of the budget:

Fieldwork: Kuala Lumpur

Past experience has shown that one month allows enough time to refine and localise interview questions with research partners at University of Malaya, test interview instrument, recruit participants, conduct ten x one-hour interviews with field notes. In addition, the novel methodology will be presented at CONF2015, to be held in Malaysia in February 2015.

Melbourne – Kuala Lumpur economy airfare is based on current Blue Sky Airlines rates. Note that airfares have been kept to a minimum by travelling from country to country, rather than returning to Australia.

1 month accommodation is based on three star, long stay accommodation rates provided by TripAdvisor.

30 days per diem rate is based on standard university rates for South-East Asia.

Pro tip: Use the same nomenclature everywhere. If you list a Thingatron X32C in your budget, then call it a Thingatron X32C in your budget justification and project plan. In an ideal world, someone should be able to flip from the project plan, to the budget and to the budget justification and back again and always know exactly where they are.

• Project plan: “Doing fieldwork in Malaysia? Whereabouts?” Flips to budget.
• Budget: “A month in Kuala Lumpur – OK. Why a month?” Flips to budget justification.
• Budget justification: “Ah, the field work happens at the same time as the conference. Now I get it. So, what are they presenting at the conference?” Flips back to the project description…

So, there you have it: Make a list; check the rules; cost everything; spreadsheet it; and then justify it. Budget done. Good job, team!

This article builds on several previous articles. I have shamelessly stolen from them.

• Constructing your budget – Jonathan O’Donnell.
• What makes a winning budget ? – Jonathan O’Donnell.
• How NOT to pad your budget – Tseen Khoo.
• Conquer the budget, conquer the project – Tseen Khoo.
• Research on a shoestring – Emily Kothe.
• How to make a simple Gantt chart – Jonathan O’Donnell.

* Actually, there are some grant schemes that give you a fixed amount of money, which I think is a really great idea . However, you will still need to work out what you are going to spend the money on, so you will still need a budget at some stage, even if you don’t need it for the application.

Also in the ‘simple grant’ series:

• How to write a simple research methods section .
• How to make a simple Gantt chart .

Share this:

28 comments.

This has saved my day!

Happy to help, Malba.

Like Liked by 1 person

[…] you be putting in a bid for funding? Are there costs involved, such as travel or equipment costs? Research Whisperer’s post on research budgets may help you […]

I’ve posted a link to this article of Jonathan’s in the Australasian Research Management Society LinkedIn group as well, as I’m sure lots of other people will want to share this.

Thanks, Miriam.

This is great! Humorous way to talk explain a serious subject and could be helpful in designing budgets for outreach grants, as well. Thanks!

Thanks, Jackie

If you are interested, I have another one on how to do a timeline: https://theresearchwhisperer.wordpress.com/2011/09/13/gantt-chart/

[…] really useful information regarding budget development can be found on the Research Whisperer Blog here. Any other thoughts and suggestions are welcome – what are your tips to developing a good […]

[…] it gets you to the level of specificity that you need for a detailed methods section. Similarly, working out a budget for your workshops will force you to be specific about how many people will be attending (venue […]

A friend of mine recently commented by e-mail:

I was interested in your blog “How to make a simple research budget”, particularly the statement: “Think through the implications of what you are going to do. Do you need to use a Thingatron? Note down that you will need to buy it, install it, and commission it.”

From my limited experience so far, I’d think you could add:

“Who else is nearby who might share the costs of the Thingatron? If it’s a big capital outlay, and you’re only going to use it to 34% of it’s capacity, sharing can make the new purchase much easier to justify. But how will this fit into your grant? And then it’s got to be maintained – the little old chap who used to just do all that odd mix of electrickery and persuasion to every machine in the lab got retrenched in the last round. You can run it into the ground. But that means you won’t have a reliable, stable Thingatron all ready to run when you apply for the follow-on grant in two years.”

[…] (For more on this process, take a look at How to Write a Simple Project Budget.) […]

[…] Source: How to make a simple research budget […]

This is such a big help! Thank You!

No worries, Claudine. Happy to help.

Would you like to share the link of the article which was wrote about funding rules? I can’t find it. Many thanks!

Hello there – do you mean this post? https://theresearchwhisperer.wordpress.com/2012/02/14/reading-guidelines

Thank @tseen khoo, very useful tips. I also want to understand more about 3C 3F 3H. What do they stand for? Can you help me find out which posts talk about that. Thank again.

[…] mount up rapidly, even if you are in a remote and developing part of the world. Putting together a half decent budget early on and being aware of funding opportunities can help to avoid financial disaster half way […]

This is so amazing, it really helpful and educative. Happy unread this last week before my proposal was drafted.

Happy to help, Babayomi. Glad you liked it.

really useful! thanks kate

[…] “How to Make a Simple Research Budget,” by Jonathan O’Donnell on The Research Whisperer […]

[…] offering services that ran pretty expensive. until I found this one. It guided me through making a simple budget. The information feels sort of like a university graduate research paper but having analysed […]

[…] Advice on writing research proposals for industry […]

[…] research serves as the bedrock of informed budgeting. Explore the average costs of accommodation, transportation, meals, and activities in your chosen […]

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• About Grants
• How to Apply - Application Guide
• Format and Write

Develop Your Budget

Cost considerations, budgets: getting started.

• Allowable direct vs. allowable F&A costs
• Modular vs. Detailed Budgets

Modular Budgets

• Detailed Budget: Personnel (Sec A & B)
• Detailed Budget: Equipment, Travel, and Trainee Costs (Sec C, D, and E)
• Detailed Budget: Other Direct Costs (Sec F)

Consortiums/Subawards

Understanding the out years.

• Other resources

As you begin to develop a budget for your research grant application and put all of the relevant costs down on paper, many questions may arise. Your best resources for answering these questions are the grants or sponsored programs office within your own institution, your departmental administrative officials, and your peers. They can answer questions such as:

• What should be considered a direct cost or indirect cost?
• What is the fringe benefit rate?
• What is the graduate student stipend rate?
• What Facilities and Administrative (F&A) costs rate should I use?

Below are some additional tips and reminders we have found to be helpful for preparing a research grant application, mainly geared towards the SF424 (R&R) application. (Note: these tips do not supersede the budget instructions found in the relevant application instruction guide found on the How to Apply - Application Guide page.  

An applicant's budget request is reviewed for compliance with the governing cost principles and other requirements and policies applicable to the type of recipient and the type of award. Any resulting award will include a budget that is consistent with these requirements. Information on the applicable cost principles and on allowable and unallowable costs under NIH grants is provided in the NIH Grants Policy Statement, Section 7.2 The Cost Principles Statement under Cost Considerations /grants/policy/nihgps/HTML5/section_7/7_cost_consideration.htm . In general, NIH grant awards provide for reimbursement of actual, allowable costs incurred and are subject to Federal cost principles /grants/policy/nihgps/HTML5/section_7/7.2_the_cost_principles.htm .

The cost principles address four tests that NIH follows in determining the allowability of costs. Costs charged to awards must be allowable, allocable, reasonable, necessary, and consistently applied regardless of the source of funds. NIH may disallow the costs if it determines, through audit or otherwise, that the costs do not meet the tests of allowability, allocability, reasonableness, necessity, and consistency.  

• II.1 (Mechanism of Support),
• II.2 (Funds Available),
• III.2 (Cost Sharing or Matching), and
• IV.5 (Funding Restrictions).
• Identify all the costs that are necessary and reasonable to complete the work described in your proposal.
• Throughout the budgeting process, round to whole dollars and use only U.S. dollars.
• Reviewers look for reasonable costs and will judge whether your request is justified by your aims and methods.
• Reviewers will consider the person months you've listed for each of the senior/key personnel and will judge whether the figures are in sync with reviewer expectations, based on the research proposed.
• Significant over- or under-estimating suggests you may not understand the scope of the work. Despite popular myth, proposing a cost-sharing (matching) arrangement where you only request that NIH support some of the funding while your organization funds the remainder does not normally impact the evaluation of your proposal. Only a few select programs require cost-sharing, and these programs will address cost-sharing in the funding opportunity.

Direct Costs: Costs that can be identified specifically with a particular sponsored project, an instructional activity, or any other institutional activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.

F&A Costs: Necessary costs incurred by a recipient for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved. To facilitate equitable distribution of indirect expenses to the cost objectives served, it may be necessary to establish a number of pools of F&A (indirect) costs. F&A (indirect) cost pools must be distributed to benefitted cost objectives on bases that will produce an equitable result in consideration of relative benefits derived.

• The total costs requested in your budget will include allowable direct costs (related to the performance of the grant) plus allowable F&A costs. If awarded, each budget period of the Notice of Award will reflect direct costs, applicable F&A, and in the case of SBIR or STTR awards, a "profit" or fee .
• For most institutions the negotiated F&A rate will use a modified total direct cost base, which excludes items such as: equipment, student tuition, research patient care costs, rent, and sub-recipient charges (after the first $25,000). Check with your sponsored programs office to find out your negotiated direct cost base.
• When calculating whether your direct cost per year is $500,000 or greater, do not include any sub-recipient F&A in the base but do include all other direct costs as well as any equipment costs.   NOTE:  Direct cost requests equal to or greater than $500,000 require prior approval from the NIH Institute/Center before application submission.  For more information, see NIH Guide Notice NOT-OD-02-004 .
• For many SBIR/STTR recipients, 40% of modified total direct costs is a common F&A rate, although rates at organizations may vary.

Modular versus Detailed Budgets

The NIH uses 2 different formats for budget submission depending on the total direct costs requested and the activity code used. 

The application forms package associated with most NIH funding opportunities includes two optional budget forms—(1) R&R Budget Form; and, (2) PHS 398 Modular Budget Form. NIH applications will include either the R&R Budget Form or the PHS 398 Modular Budget Form, but not both. To determine whether to use a detailed versus modular budget for your NIH application, see the flowchart below.

NIH uses a modular budget format to request up to a total of $250,000 of direct costs per year (in modules of $25,000, excluding consortium F&A costs) for some applications, rather than requiring a full detailed budget. The modular budget format is NOT accepted for​​

• ​SBIR and STTR grant applications,
• applications from foreign (non-U.S.) institutions (must use detailed budget even when modular option is available), or
• applications that propose the use of human fetal tissue (HFT) obtained from elective abortions (as defined in  NOT-OD-19-128  for HFT) whether or not costs are incurred.

Creating a modular budget

• Select the PHS398 Modular Budget form for your submission package, and use the appropriate set of instructions from the electronic application user's guide. You do not need to submit the SF424 (R&R) Budget form if you submit the PHS398 Modular Budget form.
• Consider creating a detailed budget for your own institution's use including salaries, equipment, supplies, graduate student tuition, etc. for every year of funds requested. While the NIH will not ask for these details, they are important for you to have on hand when calculating your F&A costs base and writing your justification, and for audit purposes.
• In order to determine how many modules you should request, subtract any consortium F&A from the total direct costs, and then round to the nearest $25,000 increment.

A modular budget justification should include:

• Personnel Justification: The Personnel Justification should include the name, role, and number of person-months devoted to this project for every person on the project. Do not include salary and fringe benefit rate in the justification, but keep in mind the legislatively mandated salary cap when calculating your budget. [When preparing a modular budget, you are instructed to use the current cap when determining the appropriate number of modules.] 
• Consortium Justification: If you have a consortium/subcontract, include the total costs (direct costs plus F&A costs), rounded to the nearest $1,000, for each consortium/subcontract. Additionally, any personnel should include their roles and person months; if the consortium is foreign, that should be stated as well.
• Additional Narrative Justification: Additional justification should include explanations for any variations in the number of modules requested annually. Also, this section should describe any direct costs that were excluded from the total direct costs (such as equipment, tuition remission) and any work being conducted off-site, especially if it involves a foreign study site or an off-site F&A rate.

​See the  NIH Modular Research Grant Applications  page and the  NIH Grants Policy Statement  for more information.   

Detailed Budget: Personnel (Sections A & B)

Personnel make up sections A and B of the SF424 (R&R) Budget form. All personnel from the applicant organization dedicating effort to the project should be listed on the personnel budget with their base salary and effort, even if they are not requesting salary support.

• Effort : Effort must be reported in person months. For help converting percent effort to person months, see: /grants/policy/person_months_faqs.htm .  
• Salary Caps: NIH will not pay requested salary above the annual salary cap, which can be found at /grants/policy/salcap_summary.htm . If salary is requested above the salary cap, NIH will reduce that line item to the salary cap, resulting in a reduced total award amount. In future years, if the salary cap increases, recipients may rebudget to pay investigator salaries up to the new salary cap, but NIH will not increase the total award amount. If you are preparing a detailed budget, you are instructed to base your request on actual institutional base salaries (not the cap) so that NIH staff has the most current information in hand at the time of award and can apply the appropriate salary cap at that time.
• Fringe Benefits: The fringe benefits rate is based on your institution's policy; the NIH does not have a pre-set limit on fringe benefits. More information on what is included as fringe benefits can be found in the Grants Policy Statement at /grants/policy/nihgps/HTML5/section_12/12.8.1_salaries_and_fringe_benefits.htm . If you have questions about what rate to use, consult your institution's sponsored programs office.  
• Senior/Key Personnel: The Senior/Key Personnel section should include any senior or key personnel from the applicant organization who are dedicating effort to this project. "Other Significant Contributors" who dedicate negligible effort should not be included. Some common significant contributors include: 1) CEOs of companies who provide overall leadership, but no direct contribution to the research; and 2) mentors for K awardees, who provide advice and guidance to the candidate but do not work on the project. Likewise, any consultants or collaborators who are not employed by the applicant organization should not be included in section A, but rather should be included in section F.3 of the budget (for consultants) or in section A of the consortium/subaward budget page (for collaborators).  
• Postdoctoral Associates: Postdocs can be listed in either section A or B depending on their level of involvement in project design and execution. If listed in section B, include the individuals' names and level of effort in the budget justification section.  
• Other Personnel: Other personnel can be listed by project role. If multiple people share the same role such as "lab technician", indicate the number of personnel to the left of the role description, add their person months together, and add their requested salaries together. The salaries of secretarial/clerical staff should normally be treated as F&A costs. Direct charging of these costs may be appropriate where a major project or activity explicitly budgets for administrative or clerical services and individuals involved can be specifically identified with the project or activity [see Exhibit C of OMB Circular A-21 (relocated to 2 CFR, Part 220)]. Be specific in your budget justifications when describing other personnel's roles and responsibilities.

Detailed Budget: Equipment, Travel, and Trainee Costs (Sections C, D, and E)

• Generally equipment is excluded from the F&A base, so if you have something with a short service life (< 1 year), even if it costs more than $5,000, you are better off including it under "supplies".
• If you request equipment that is already available (listed in the Facilities & Other Resources section, for example), the narrative justification must explain why the current equipment is insufficient to accomplish the proposed research and how the new equipment's use will be allocated specifically to the proposed research. Otherwise, NIH may disallow this cost.
• General purpose equipment, such as desktop computers and laptops, that will be used on multiple projects or for personal use should not be listed as a direct cost but should come out of the F&A costs, unless primarily or exclusively used in the actual conduct of the proposed scientific research.
• While the application does not require you to have a price quote for new equipment, including price quotes in your budget justification can aid in the evaluation of the equipment cost to support the project.
• Trainee Costs: Leave this section blank unless otherwise stated in the funding opportunity. Graduate student tuition remission can be entered in section F.8.

Detailed Budget: Other Direct Costs (Section F)

• Materials and Supplies: In the budget justification, indicate general categories such as glassware, chemicals, animal costs, including an amount for each category. Categories that include costs less than $1,000 do not have to be itemized.  
• Animal Costs: While included under "materials and supplies", it is often helpful to include more specific details about how you developed your estimate for animal costs. Include the number of animals you expect to use, the purchase price for the animals (if you need to purchase any), and your animal facility's per diem care rate, if available.  Details are especially helpful if your animal care costs are unusually large or small. For example, if you plan to follow your animals for an abnormally long time period and do not include per diem rates, the reviewers may think you have budgeted too much for animal costs and may recommend a budget cut.  
• Publication Costs: You may include the costs associated with helping you disseminate your research findings from the proposed research. If this is a new application, you may want to delay publication costs until the later budget periods, once you have actually obtained data to share.  
• Consultant Services: Consultants differ from Consortiums in that they may provide advice, but should not be making decisions for the direction of the research. Typically, consultants will charge a fixed rate for their services that includes both their direct and F&A costs. You do not need to report separate direct and F&A costs for consultants; however, you should report how much of the total estimated costs will be spent on travel. Consultants are not subject to the salary cap restriction; however, any consultant charges should meet your institution's definition of "reasonableness".  
• ADP/Computer Services: The services you include here should be research specific computer services- such as reserving computing time on supercomputers or getting specialized software to help run your statistics. This section should not include your standard desktop office computer, laptop, or the standard tech support provided by your institution. Those types of charges should come out of the F&A costs.  
• Justify basis for costs, itemize by category.
• Enter the total funds requested for alterations and renovations. Where applicable, provide the square footage and costs.
• If A&R costs are in excess of $300,000 further limitations apply and additional documentation will be required.
• The names of any hospitals and/or clinics and the amounts requested for each.
• If both inpatient and outpatient costs are requested, provide information for each separately.
• Provide cost breakdown, number of days, number of patients, costs of tests/treatments.
• Justify the costs associated with standard care or research care. (Note: If these costs are associated with patient accrual, restrictions may be justified in the Notice of Award.) (See NIH Grants Policy Statement NIH Grants Policy Statement, Research Patient Care Costs )
• Tuition: In your budget justification, for any graduate students on your project, include what your school's tuition rates are. You may have to report both an in-state and out-of-state tuition rate. Depending on your school stipend and tuition levels, you may have to budget less than your school's full tuition rate in order to meet the graduate student compensation limit (equivalent to the NRSA zero-level postdoctorate stipend level).  
• Human Fetal Tissue (HFT) from elective abortions: If your application proposes the use of human fetal tissue obtained from elective abortions (as defined in NOT-OD-19-128 ), you must include a line item titled “Human Fetal Tissue Costs” on the budget form and an explanation of those costs in the budget justification.  
• Other: Some types of costs, such as entertainment costs, are not allowed under federal grants. NIH has included a list of the most common questionable items in the NIH Grants Policy Statement ( /grants/policy/nihgps/HTML5/section_7/7_cost_consideration.htm ). If NIH discovers an unallowable cost in your budget, generally we will discount that cost from your total award amount, so it is in your best interest to avoid requesting unallowable costs. If you have any question over whether a cost is allowable, contact your sponsored programs office or the grants management specialist listed on the funding opportunity.

If you are using the detailed budget format, each consortium you include must have an independent budget form filled out.

• In the rare case of third tier subawards, section F.5 "subawards/consortium/contractual" costs should include the total cost of the subaward, and the entire third tier award is considered part of the direct costs of the consortium for the purposes of calculating the primary applicant's direct costs.
• Cost Principles. Regardless of what cost principles apply to the parent recipient, the consortium is held to the standards of their respective set of cost principles.
• Consortium F&A costs are NOT included as part of the direct cost base when determining whether the application can use the modular format (direct costs < $250,000 per year), or determining whether prior approval is needed to submit an application (direct costs $500,000 or more for any year). NOTE: The $500K prior approval policy does not apply to applications submitted in response to RFAs or in response to other funding opportunities including specific budgetary limits above $500K.  
• F&A costs for the first $25,000 of each consortium may be included in the modified total direct cost base, when calculating the overall F&A rate, as long as your institution's negotiated F&A rate agreement does not express prohibit it.
• If the consortium is a foreign institution or international organization, F&A for the consortium is limited to 8%.
• Consortiums should each provide a budget justification following their detailed budget. The justification should be separate from the primary recipient's justification and address just those items that pertain to the consortium.
• We do not expect your budget to predict perfectly how you will spend your money five years down the road. However, we do expect a reasonable approximation of what you intend to spend. Be thorough enough to convince the reviewers that you have a good sense of the overall costs.
• In general, NIH does not have policy on salary escalation submitted in an application. We advise applicants to request in the application the actual costs needed for the budget period and to request cost escalations only if the escalation is consistent with institutional policy. See /grants/policy/salcap_summary.htm and /grants/policy/fy2012_salary_cap_faqs.htm .
• Any large year-to-year variation should be described in your budget justification. For example, if you have money set aside for consultants only in the final year of your budget, be sure to explain why in your justification (e.g. the consultants are intended to help you with the statistical interpretation of the data and therefore are not needed before the final year).
• In general, NIH recipients are allowed a certain degree of latitude to rebudget within and between budget categories to meet unanticipated needs and to make other types of post-award changes. Some changes may be made at the recipient's discretion as long as they are within the limits established by NIH. In other cases, NIH prior written approval may be required before a recipient makes certain budget modifications or undertakes particular activities (such as change in scope). See NIH Grants Policy Statement - Changes in Project and Budget .

Other resources to help you create your budget

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This page last updated on: September 11, 2019

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How to Write a Research Budget Plan?

• January 20, 2021

Setting up a research budget plan is really crucial for any Ph.D. candidate or any other researcher. This plan will help you know how expensive your research is.  A research budget ensures you if all the costs are covered or if you need any additional funds to cover the research expenses. In conclusion, this guide will help you to provide a realistic appraisal of the research costs.

The simple guide to the research budget plan

Is there a fund? Is there a funding opportunity within the Faculty? How about the cost of publishing your article in an open-access journal? Some Universities fund publication cost too.

Submit the research proposal budget

When you are planning a research budget there is different kind of costs:

Direct Costs:

This kind of cost is utilized solely to execute the research. like expenses on:

• Research staff members
• Materials & Chemicals
• Travel finance: Attending research-related conferences, seminars, and training travel expenses for the surveys and data collection and Visiting expenses to other institutions.

Indirect Costs

These expenses will be reserved for institutional facilities when conducting your research. For example:

• Institutional laboratory
• Electricity
• Water & Energy usage 
• Telecommunication charges
• Equipment: printer, computer, or other electronic items

Types of  Research Budget

There is 2 kind of budget designs:

Modular Design Budget

• The direct costs are equal to or less than $250,000 annually
• You have research grants

Detailed Design Budget

• Your direct costs are more than $250,000 per annum
• You are applying for grants other than research grant type or its equivalents

Plan your Research Budget

When you find the research question and plan a suitable study design; You can guess the unpredictable charges that can arise while researching. Consider these five main points while planning your research budget:

1-Budget Essentials

Which items will affect your research budget? These are mainly:

• The study design
• Testing procedures
• Sample collection methods
• Research settings. 

2-Instructions of the Funding Agency

Find the introduction of budget rules and limitations by your funding agency. 

3- Categorization of Each Item

You should do a breakdown of the budget item-wise and year-wise with cost calculation. After that, consider the recurring and nonrecurring items that are directly related to your research. 

4-Justification of Each Item

For every enlisted item provide a solid justification for its importance in your research budget. 

5- Review & Verification of the  Research Budget 

Reviewing is the most significant step of your budget plan. Above all, Recalculate the cost of each item and the total items. Remember that too low or high budget will raise suspicion in the mind of your reviewers. So stay in the research budget range.

Budget Justification

The funding agencies require justification for each item of the budget plan. This document is also known as the budget narrative page.  In other words, It reasons the importance of each item. Academictown suggests drawing a three-columned table with:

• The name of the item in the first column
• The quantity and cost in the second column
• A justification statement in the third column

Budget Summary

At last, provide a summarized form of your budget to specify every item with its cost per annum:

• The non-recurring items  will only be specified under the first-year heading as they have a one-time expense.
• The recurring items will be mentioned in both years, along with their costs.

This research budget plan prepares you for all the financial aids you need. The plan will inform you about the expenses of each research item and method. The budget section is the key factor of success or failure for your proposal. For instance, You can manage the items with a spreadsheet. Pointing out and categorizing the direct and indirect costs, at last, will be able to plan and compose a well-scripted budget.

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Basic components of a research budget

Two models of budget development, other factors affecting your budget.

• Additional Resources

Budgets should provide the sponsor with an accurate assessment of all cost items and cost amounts that are deemed necessary and reasonable to carry out your project. They should be based upon your description or the statement of work. Budget justification provides more in-depth detail and reason for each cost and is often considered by reviewers as a good indicator of the feasibility of the research.

A research budget contains both direct costs and indirect costs (overhead), but the level of detail varies from sponsor to sponsor. The first step in developing a budget is to carefully read the guidelines of the funding opportunity being pursued.

There is no magic formula available for developing a budget but there are some basic steps to follow in order to develop an accurate budget:

• Define project tasks, timelines and milestones and determine the actual resources and costs required to complete these. Consider whether contingencies are needed (and confirm they are eligible expenses).
• Determine the eligible expense categories and maximum amount allowed by the sponsor. Adjust scope of the project to make sure proposed activities fit within the allowance.
• Categorize these costs (e.g., salaries, supplies, equipment…) per year, in some cases by quarter.
• Ensure that project scope and budget match. Include indirect costs of research as permitted by sponsor and the University policy.  

The examples below developed by the University of British Columbia demonstrate two ways to include indirect costs in your budget.

• Price model:  Indirect cost is built into each budget line item.
• Cost model:  Indirect cost of research is presented as a separate line item.

Unless the sponsor specifies in writing that they require the indirect costs of research to be presented as a separate line item (Cost Model), the indirect cost should be built into each budget line item (Price Model). Indirect costs are normally included in the price of goods and services worldwide.

For example, you are developing a budget for a funding opportunity with an indirect cost rate of 25%. Your direct costs are $201,000 broken down by expense categories shown in the  second column of the table below. The third and fourth colums present the two ways you can include the 25% overhead in your budget using the Price Model or the Cost Model, respectively:

In-kind and cash contributions, like other costs to the sponsored project, must be eligible and must be treated in a consistent and uniform manner in proposal preparation and in financial reporting.

Cash contributions

Cash contributions are actual cash transactions that can be documented in the accounting system. Examples of cash contributions include:

• allocation of compensated faculty and staff time to projects, or
• the purchasing of equipment by the university or other eligible sponsor for the benefit of the project.

In-kind contributions

In-kind contributions are both non-monetary or cash equivalent resources that can be given a cash value, such as goods and/or services in support of a research project or proposal. It is challenging to report on in-kind contribution, please make sure the numbers you use are well supported, consistent and easy to quantitate.

Examples of an in-kind contribution may include:

• Access to unique database or information
• Professional, analytical, and other donated services
• Employee salaries including benefits for time allocated to the project
• Study materials, technologies, or components
• Patents and licenses for use
• Use of facilities (e.g., lab or meeting spaces)
• Partner organization time spent participating in the project
• Eligible infrastructure items

Matching on sponsored projects

Some sponsored projects require the university and/or a third party to contribute a portion of the project costs–this contribution is known as matching.

Matching requirements may be in the form of an actual cash expenditure of funds or may be an “in-kind” match. For example:

• A 1:1 match would require $100 of a third-party matching for every $100 received from an agency.
• A 30% match would mean that of a total budget of $100, the agency would provide $70 and a third party would need to match $30.

Examples of agency programs that include some form of matching from a third party are:

• NSERC Collaborative Research and Development Grants
• NSERC Idea to Innovation Grants
• SSHRC Partnership Grants
• CIHR Industry Partnered Collaborative Research Program, and
• CIHR Proof of Principle Grants  

Additional resources

• Current  salary  and  benefit  rates for graduate students and postdocs/research associates
• SFU  Business and Travel Expense  Policy
• Animal care services

• Conduct , Grants and Funding

How to Plan and Write a Budget for Research Grant Proposal

Conductscience.

To be a successful candidate for a research grant, you need perfect budget formulation and justification. Here, we will help you plan the research budget for your grant proposal and give you handy tips to transform it into a convincible form.

Budget as a Skeletal Support

Your budget is the skeleton of your grant proposal. It provides the estimated finance your research needs to be completed in a particular time range. It also gives the funders an exact knowledge about where their funds will be used and how will they be financed ( Asya, 2008 ). It is your responsibility to postulate clearly how you will manage the funds if granted. An excellent budget plan will compel your funders to assume that you have thought about every financial detail concerning your project.

Specific Terminologies to Know Beforehand

Certain wordings are preferred to convey your research budget information better. It is important to familiarize with them before constructing the budget section of the proposals. The lexis includes:

Direct Costs

These are the expenses that are utilized solely for executing your research. For example, expenses on your research staff members, tools, materials, and travel finance.

Facilities & Administrative Costs (Indirect Costs)

These are the overhead charges reserved for institutional facilities that you avail yourself while conducting your research. For example, institutional laboratory, electricity, and water usage costs.

Fringe Benefits

These are the additional benefits provided to the personnel, along with their basic salaries. Every institution has its own set of fringe benefits rates.

Research Consortium

It is a group of institutions that apply for a grant together as one. They have reached a grant agreement, and one of the institutions represents them all. The budget is divided between them.

Types of Budget

There are two budget designs used in the NIH grant applications. Specific points will decide the type of budget design form you have to use for your application. These are:

Modular Design Budget

Your budget design is considered modular when your research fulfills the following criteria:

• Your direct costs are equal to or less than $250,000 annually
• You are applying for research grants or their equivalents
• Your institution is located in the United States

Detailed Design Budget

Your budget design should be in detailed form if your research project fulfills any of the below-mentioned criteria:

• Your direct costs are more than $250,000 per annum
• You are applying for grants other than research grant type or its equivalents
• Your institution is situated outside the United States

For the modular design, you have to fill out the PHS 398 modular budget application form, and for the detailed design budget, you have to use the R & R detailed budget application form.

Planning your Budget

Your budget planning starts when you find the research question and decide on a suitable study design. You should also be able to guess the unpredictable charges that can arise while conducting your research ( Sudheesh, Devika & Nethra, 2016 ). There are five main points to keep in mind while planning your research budget:

Pin-point the Budget Essentials

Think about all the things that will affect your research budget. These are mainly the study design, testing procedures, sample collection methods, and research settings. The more complicated and unique these essentials will be, the higher will be your budget requirements. Also, observe the already present resources and will they benefit your research budget.

Follow the Instructions of the Funding Agency

The next point to consider while planning your budget is to abide by the budget rules and limitations of your particular funding agency. Read each instruction carefully and remember not to deviate from it. It is expected of you to provide the exact list of items necessary for your project.

Categorization of Each Item

Thirdly, a breakdown of each item into its related category should be made along with its cost.  A breakdown of the budget item-wise and year-wise with cost calculation should be done. Point out the recurring and nonrecurring items that are directly related to your research. All this planning is done beforehand to ensure proper budget management.

Justification of Each Item

For every enlisted item, you should be able to provide a solid justification for its importance in your research. Only a well-justified budget document can win the confidence of the peer reviewers.

Review & Verification of the Budget Items

Reviewing is the most significant step for every document or proposal. You can ask your team members to review your budget document for you. Also, recalculate the cost of each item and the total items combined cost per annum. Keep in mind that too low or high budget will only raise suspicion in the mind of your reviewers. So, make sure you plan a research budget range, not more than the maximum limit set by your funding agency ( Michael et al., 2019 ).

Scripting your Budget onto the Grant Application

Projecting your finances into your application requires skills. When writing, we primarily divide our budget into two sub-sections. These include:

As mentioned before, these are the direct expenses on which your research is largely dependent. So, firstly, give the heading of direct costs and then further give the following subheadings with explanations.

Personnel Involved

If your research project involves resource team members, here is where you have to mention them. Your resource team includes the technicians, laboratory attendants, site caretakers, data entry personnel, junior researchers, and the senior researcher involved. Specify their allowances and salaries in an organized manner.

Recurring Expenditure

These expenses occur regularly and yet cannot be avoided. These include equipment usage, laboratory-conducted diagnostic tests, telecommunication charges, chemicals, and any other essential items. Fees for human subjects involved in your research are also stated here.

Non-recurring Expenditure

These are the costs of items for which you have to pay one-time charges, and then their use is free. These include buying charges for the printer, computer, or other electronic items. Once you buy them, they are charge-free. Thus, you have to specify all the non-recurring charges in your budget form.

Traveling Expenditure

In this subheading, specify the amount spent on your traveling for research purposes. Separately mention your traveling costs for attending research-related conferences, seminars, and training. Also, mention the travel expenses for the surveys and data collection. Visiting expenses to other institutions for the sake of a research study can also be mentioned here.

Indirect Costs

The second sub-section is indirect expenditure. It includes facilities that are indirectly related to your research project. These can be library facilities, electricity, and water usage for your experiments and test conduction. These are also called overhead charges that are paid specifically to the institution for providing such facilities ( Ahmed & Abdullah, 2017 ).

Budget Overview

In the final paragraph, write a short finalizing note relating your budget outlining the main point. This should be a 4 to 5-lined paragraph.

Budget Justification

Most of the funding agencies separately require justification for each item that you specified in your above-mentioned budget form. This document is also known as the budget narrative page. It reasons the importance of that item for your research conduction. Each item is mentioned in the same order as in your budget form and should be justified respectively ( Al-Jundi & Salah, 2016 ). It is best to make a three-columned table with the name of the item in the first column, the quantity and cost in the second column, and a justification statement in the third column.

Budget Summary

In the last, you have to provide a summarized form of your budget for your proposed research. It is written at the end when you have completed writing your whole application. In this, you have to specify every item with its cost per annum. The non-recurring items will only be specified under the first-year heading as they have a one-time expense. Likewise, the recurring items will be mentioned in both years, along with their costs.

Esthetical Considerations

The following points will enhance the esthetics of your budget section:

Headings & Bullet points

Writing the budget items under a categorized heading will make it easy for the reviewers to retrieve the necessary points in your budget. You can use bullet marks or checklist signs to highlight your main points. This will show the reviewers that you have the budget representation skills and that your enlisted budget finance is authentic.

Tabulations

Try to write your budget essentials in a tabulated form with three main columns. The first column represents the item name. The second column specifies the cost of that particular essential.  The third column signifies the importance of your particular essential in performing your research. This will save both time and effort of reviewers who have to scrutinize many applications at a time.

Organization

The pattern you follow for each essential specification in the budget form should be followed in the same manner while writing the budget justification document. There should be a flow in your budget data and which will further enhance its esthetics.

Elementary Language

Your language should be simple enough to be understood by a common person. Complicated terms and phrases will only make it difficult for reviewers to reach your point of view.

Your budget prepares you for all the financial aids you need to conduct your research. It informs you about the expenses of each research item and method. In this way, you can choose an economical procedure for your research. The budget section is considered as the key factor of success or failure for your proposal. This section requires a skillful approach and should be handled delicately. Nowadays, research writers record their budget in the form of electronic spreadsheets. It is easy to manage the budget essentials and the expenses via these excel spreadsheets. You just need to point out and categorize the direct and indirect costs in the already drawn tabulated budget spreadsheet. Hence, you will be able to plan and compose a well-scripted budget by following the instructions given in this article.

• Al-Riyami, A. (2008, April). How to Prepare a Research Proposal.  Oman Medical Journal ,  23 (2), 66–69. http://europepmc.org/articles/PMC3282423
• Duggappa, D.R., Nethra, S.S. & Sudheesh, K. (2016, September). How to Write a Research Proposal?  Indian Journal of Anaesthesia ,  60 (9), 631–634. https://doi.org/10.4103/0019-5049.190617
• Burkhardt, J., Carlson, J.N., Gottlieb, M., King, A.M., Lee, S., Santen, S.A. & Wong, A.H. (2019, January). Show Me the Money: Successfully Obtaining Grant Funding in Medical Education.  The Western Journal of Emergency Medicine ,  20 (1), 71–77. https://doi.org/10.5811/westjem.2018.10.41269
• Al-Maniri, A. & Al-Shukaili, A. (2017). Writing a Research Proposal to the Research Council of Oman.  Oman Medical Journal ,  32 (3), 180–188. https://doi.org/10.5001/omj.2017.35
• Azzam, A. & Sakka, S. (2016, November). Protocol Writing in Clinical Research. Journal of Clinical & Diagnostic Research, 10(11), Z10–Z13. https://doi.org/10.7860/JCDR/2016/21426.8865

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https://www.vitae.ac.uk/doing-research/leadership-development-for-principal-investigators-pis/leading-a-research-project/applying-for-research-funding/costing-and-pricing-a-research-proposal

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Costing and pricing a research proposal

Costing and pricing  are the parts of the proposal development process which most often strikes fear into the hearts of principal investigators, with some justification. However all those who have been awarded research funding will have gone through this process, so there is plently of experience and advice to draw on and for most researchers there will be support from the central research or finance office. 

Why costing AND pricing?

There is a clear difference between costing and pricing. 

• The cost of a piece of research is how much it will cost your institution for you to undertake the research in question. In the UK this amount is calculated and described as the full economic cost (fEC). Details of the fEC are provided below
• The price is how much you request (or, rather, eventually get) from your funder.

You may be surprised to know that in almost all cases in the UK the price is lower than the cost. (The reason for this is historical and partly explained by what is known as the   dual support system ) . So the key issue for a PI is to be sure that the funds awarded will in fact cover the actual costs of the research, and this is a question that  your research office should be able to answer and reassure you about. If you have not yet spoken to your research office then now really is the time! You should find help and internal systems available to make all the necessary calculations for your proposal. If you really do need to know how to do it yourself then there are many guides and training courses available (for example, visit  ARMA or BUFDG ). Your own institution may offer training or guidance.

Full Economic Costing

All UK Universities are required to use a full economic costing (fEC) methodology that estimates the full cost of undertaking a piece of research; this is then used to inform the amount of money (normally less than the fEC) that will be requested from the funder.

The principles of Full Economic Costing (fEC) in the UK are detailed on the   JCPSG website  - below is a brief overview.

When costing research activities (ie project proposals) three main cost elements are considered:

• Directly Incurred (DI) costs, i.e. those that can be explicitly identified and recorded against a project. Examples are: a research assistant working full time on the project, equipment bought for exclusive use by the project, travel directly related to the project, materials bought for the project, etc.
• Directly Allocated (DA) costs, i.e. those that are attributable to a project, but are estimated rather than directly recorded. Examples are: the 10% of your time that you expect to spend on the project, a fraction of pool staff that you might draw on, your use of space in the building
• Indirect (Ind) costs, i.e. all the other costs of running your institution that are not directly attributable to the project, but nonetheless need to be paid for. Examples are the library, HR, finance, the vice chancellor's office, IT infrastructure.

The example below shows a simple costing based on these three elements.  Methods for calculating DA and Ind costs in particular are complrex and subject to change from time to time, so not provided here. You should consult within your institution for details of these methods should you be intending to draft your own project costing.

This is a simplified example to give an overview of Full Economic Costing (fEC) and is not meant to reflect accurate costs. You should always consult your research office and use the IT tool(s) that they provide/recommend.

If you are new to full economic costing then you may well be surprised that the cost of a 3 year project with a research assistant plus a half a day a week technician and 1 day a week of the PI's time costs over a quarter of a million pounds.

Please note that the actual costs will need to be calculated to the nearest penny (or pound depending on the proposed funded) and that there are many other items that you may need to consider.

Only when the   fEC has been calculated are you in a position to consider the pricing - that is, how much money should you ask for?

Some research funders/schemes stipulate a non-negotiable proportion of the fEC, which is helpful. Examples are:

•  UK Research Councils ( 80% of fEC)
• EC Framework Projects (75% of eligible costs [not of fEC])
• UK Charities (direct costs only)
• UK Government departments (100% of fEC).

However, these proportions can be subject to specific exceptions and rules for the particular funding schemes that you are interested in so you should always check the precise offer.

Other funders (mainly industrial and commercial bodies) will pay what they think the research is worth - this might be above or below the fEC and may depend on issues such as intellectual property rights. You should always consult your research office when pricing for non standard funders.

Before you approach a potential research funder you should consider your internal approval proce ss.

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How to Estimate a Proposal Budget: Considerations, Calculators, Communication

Why You Need the Ultimate Library for Your RFP Responses

Respond to RFPs , Responding to RFPs

Updated: Feb 8th, 2024

Creating an effective proposal budget is key to writing a winning proposal.

But it’s not exactly easy.

Your proposal budget has to be accurate, justifiable, and appealing … all while ensuring profitability for your organization.

(Learn how RFP360 can help you streamline the proposal management process.)

But what exactly is a proposal budget?

A proposal budget is the budget you put forth in a business proposal. It serves as an estimate of the cost your prospect will pay if they select your organization.

Below, we’ll provide advice to help you create an effective proposal budget in the form of considerations, calculators, and communication tips.

5 Key Proposal Budget Considerations

When creating a proposal budget, you must consider five key factors.

• Research and development.
• Travel costs.
• Operational expenses.
• Profit margin.

1. Salary Costs 

To calculate the salary cost for your proposal, determine who will be involved in the project.

For example, an ad agency might support their clients with:

• Account executives.
• Creative directors.
• Art directors.
• Copywriters.
• Media buyers.

A software company, on the other hand, might rely on:

• Customer success representatives.
• Support representatives.
• Implementation specialists.

Once you know who will support the prospect if they select your organization, determine how much they make per hour.

Then, simply multiply that figure by the number of hours they will need to work.

2. Research and development

Your proposal budget should also take research and development costs into consideration.

How much did your organization invest in determining whether you had a viable market and offering? How much did you spend actually creating the offering?

While you won’t put the burden of recouping these costs on a single client, they are important to keep in mind.

3. Travel costs

If your employees must travel to satisfy your proposal, factor in these costs, as well.

This may include salespeople, implementation specialists, trainers, account managers, or anyone else who does on-site visits with the client.

4. Operational expenses

Operational expenses are crucial to remember when creating a proposal budget. After all, you have to keep the lights on.

Calculate costs such as marketing, sales, rent, utilities, maintenance, general staff, and any other expenses your organization must incur to continue operations.

5. Profit margin

Finally, understand your target profit margin.

While your business objective likely centers around your customers, you can’t serve anyone if you don’t stay in business.

Understand and consider your profit margin before finalizing your proposal budget.

Proposal Calculators

To help you accurately estimate your proposal budget, we’ve compiled a list of calculator tools.

NFWF Indirect Cost Calculator

The National Fish and Wildlife Foundation offers this Indirect Cost Calculator tool “to assist applicants with calculating the allowable amount of indirect costs that can be included in proposal budgets.”

Price&Cost

Price&Cost is a software solution that offers “painless project budgeting and cost tracking.”

While the solution costs $90 per month in their lowest pricing tier, they offer a 14-day free trial.

Here’s a short, one-minute video that explains how it works:

Omnic Calculator

This tool is designed to work as an overall business budget calculator that “you can treat as a business budget worksheet to plan out the budget for upcoming months or to quickly reassess your priorities.”

It can, however, serve as your proposal budget calculator. Just ignore the income sections and focus on one-time costs, salaries, and monthly expenses.

Understanding Client Needs Through Communication

Effectively communicating your proposal budget is key.

One often-overlooked step in this process comes during the client discovery period: Understanding your prospect’s budget.

Creating a proposal budget that’s wildly out of line with their expectations won’t help anyone.

But how do you get your prospects to open up about their budget before you respond to their requests for proposals (RFPs)?

According to sales expert Lilly Ferrick , “You could come right out and ask, ‘What is your budget?’ But in doing so, unless you’ve already established a high degree of trust, you are likely to encounter obstacles.”

Instead, she suggests:

• Providing a typical budget range and asking if that falls in line with their expectations.
• Asking open-ended questions, like “What kind of budget do you have in mind?”
• Asking if they have determined a budget, and helping them determine one if they haven’t.

Approaching the topic in this manner allows prospects to engage in a fluid conversation, instead of locking them into a specific figure before they’re comfortable.

Use the insights gained from this discussion to tailor your proposal to their needs and limitations.

Once you’re ready to present your proposal budget, you’ll want to create a budget narrative — also known as a budget justification.

According to the Rochester Institute of Technology (RIT), a budget narrative serves two purposes:

• Explaining how you estimated the cost.
• Justifying the cost.

The key to writing a budget narrative that appeals to prospects is providing adequate detail and tying everything back to return on investment (ROI).

In most cases, organizations aren’t trying to avoid spending money — they’re trying to avoid wasting money.

As long as you can prove the money they invest in your organization will bring value, they’ll happily accept the cost.

How RFP360 can help

RFP360 — the only full-circle RFP management system on the market today — streamlines the entire proposal management process, empowering users to focus on creating compelling content that leads to wins.

“RFP360 has really helped us handle dramatic influxes,” said Technolutions Chief of Staff Laura Gardner. “For example, at one point last year, we had 12 RFPs due in one month, and we were able to submit responses to all of them.”

Learn how RFP360 can improve the proposal management process at your organization.

As RFP360’s sales director, Pat is responsible for implementing strategic growth initiatives, mentoring sales staff, and driving revenue. Before joining RFP360, he led the sales team for a growing tech firm as they launched their North American presence and new go-to-market strategies. When he’s not working or chasing down his one-and-a-half-year-old and three-and-a-half-year-old children, he enjoys golfing and watching live music.

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• How to Write a Research Proposal | Examples & Templates

How to Write a Research Proposal | Examples & Templates

Published on October 12, 2022 by Shona McCombes and Tegan George. Revised on November 21, 2023.

A research proposal describes what you will investigate, why it’s important, and how you will conduct your research.

The format of a research proposal varies between fields, but most proposals will contain at least these elements:

Introduction

Literature review.

• Research design

Reference list

While the sections may vary, the overall objective is always the same. A research proposal serves as a blueprint and guide for your research plan, helping you get organized and feel confident in the path forward you choose to take.

Table of contents

Research proposal purpose, research proposal examples, research design and methods, contribution to knowledge, research schedule, other interesting articles, frequently asked questions about research proposals.

Academics often have to write research proposals to get funding for their projects. As a student, you might have to write a research proposal as part of a grad school application , or prior to starting your thesis or dissertation .

In addition to helping you figure out what your research can look like, a proposal can also serve to demonstrate why your project is worth pursuing to a funder, educational institution, or supervisor.

Research proposal length

The length of a research proposal can vary quite a bit. A bachelor’s or master’s thesis proposal can be just a few pages, while proposals for PhD dissertations or research funding are usually much longer and more detailed. Your supervisor can help you determine the best length for your work.

One trick to get started is to think of your proposal’s structure as a shorter version of your thesis or dissertation , only without the results , conclusion and discussion sections.

Download our research proposal template

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Writing a research proposal can be quite challenging, but a good starting point could be to look at some examples. We’ve included a few for you below.

• Example research proposal #1: “A Conceptual Framework for Scheduling Constraint Management”
• Example research proposal #2: “Medical Students as Mediators of Change in Tobacco Use”

Like your dissertation or thesis, the proposal will usually have a title page that includes:

• The proposed title of your project
• Your supervisor’s name
• Your institution and department

The first part of your proposal is the initial pitch for your project. Make sure it succinctly explains what you want to do and why.

Your introduction should:

• Introduce your topic
• Give necessary background and context
• Outline your  problem statement  and research questions

To guide your introduction , include information about:

• Who could have an interest in the topic (e.g., scientists, policymakers)
• How much is already known about the topic
• What is missing from this current knowledge
• What new insights your research will contribute
• Why you believe this research is worth doing

As you get started, it’s important to demonstrate that you’re familiar with the most important research on your topic. A strong literature review  shows your reader that your project has a solid foundation in existing knowledge or theory. It also shows that you’re not simply repeating what other people have already done or said, but rather using existing research as a jumping-off point for your own.

In this section, share exactly how your project will contribute to ongoing conversations in the field by:

• Comparing and contrasting the main theories, methods, and debates
• Examining the strengths and weaknesses of different approaches
• Explaining how will you build on, challenge, or synthesize prior scholarship

Following the literature review, restate your main  objectives . This brings the focus back to your own project. Next, your research design or methodology section will describe your overall approach, and the practical steps you will take to answer your research questions.

To finish your proposal on a strong note, explore the potential implications of your research for your field. Emphasize again what you aim to contribute and why it matters.

For example, your results might have implications for:

• Improving best practices
• Informing policymaking decisions
• Strengthening a theory or model
• Challenging popular or scientific beliefs
• Creating a basis for future research

Last but not least, your research proposal must include correct citations for every source you have used, compiled in a reference list . To create citations quickly and easily, you can use our free APA citation generator .

Some institutions or funders require a detailed timeline of the project, asking you to forecast what you will do at each stage and how long it may take. While not always required, be sure to check the requirements of your project.

Here’s an example schedule to help you get started. You can also download a template at the button below.

Download our research schedule template

If you are applying for research funding, chances are you will have to include a detailed budget. This shows your estimates of how much each part of your project will cost.

Make sure to check what type of costs the funding body will agree to cover. For each item, include:

• Cost : exactly how much money do you need?
• Justification : why is this cost necessary to complete the research?
• Source : how did you calculate the amount?

To determine your budget, think about:

• Travel costs : do you need to go somewhere to collect your data? How will you get there, and how much time will you need? What will you do there (e.g., interviews, archival research)?
• Materials : do you need access to any tools or technologies?
• Help : do you need to hire any research assistants for the project? What will they do, and how much will you pay them?

If you want to know more about the research process , methodology , research bias , or statistics , make sure to check out some of our other articles with explanations and examples.

Methodology

• Sampling methods
• Simple random sampling
• Stratified sampling
• Cluster sampling
• Likert scales
• Reproducibility

 Statistics

• Null hypothesis
• Statistical power
• Probability distribution
• Effect size
• Poisson distribution

Research bias

• Optimism bias
• Cognitive bias
• Implicit bias
• Hawthorne effect
• Anchoring bias
• Explicit bias

Once you’ve decided on your research objectives , you need to explain them in your paper, at the end of your problem statement .

Keep your research objectives clear and concise, and use appropriate verbs to accurately convey the work that you will carry out for each one.

I will compare …

A research aim is a broad statement indicating the general purpose of your research project. It should appear in your introduction at the end of your problem statement , before your research objectives.

Research objectives are more specific than your research aim. They indicate the specific ways you’ll address the overarching aim.

A PhD, which is short for philosophiae doctor (doctor of philosophy in Latin), is the highest university degree that can be obtained. In a PhD, students spend 3–5 years writing a dissertation , which aims to make a significant, original contribution to current knowledge.

A PhD is intended to prepare students for a career as a researcher, whether that be in academia, the public sector, or the private sector.

A master’s is a 1- or 2-year graduate degree that can prepare you for a variety of careers.

All master’s involve graduate-level coursework. Some are research-intensive and intend to prepare students for further study in a PhD; these usually require their students to write a master’s thesis . Others focus on professional training for a specific career.

Critical thinking refers to the ability to evaluate information and to be aware of biases or assumptions, including your own.

Like information literacy , it involves evaluating arguments, identifying and solving problems in an objective and systematic way, and clearly communicating your ideas.

The best way to remember the difference between a research plan and a research proposal is that they have fundamentally different audiences. A research plan helps you, the researcher, organize your thoughts. On the other hand, a dissertation proposal or research proposal aims to convince others (e.g., a supervisor, a funding body, or a dissertation committee) that your research topic is relevant and worthy of being conducted.

Cite this Scribbr article

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McCombes, S. & George, T. (2023, November 21). How to Write a Research Proposal | Examples & Templates. Scribbr. Retrieved March 21, 2024, from https://www.scribbr.com/research-process/research-proposal/

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Developing a Budget for Your Research Application

Budgets and budget justifications demonstrate feasibility, value for money and detail why you need an item for your project, as well as how you arrived at the costings.

Every research project has two budget categories: direct costs and indirect costs.

The University determines a set percentage for the indirect costs of funded research. Contact Grants Services for the correct figure to use.

Direct costs are costs integral to achieving the research objectives of a grant. The costs directly address the research objectives of the grant and relate to the research plan.

Direct cost examples:

• Personnel, e.g. research assistants, student stipends for PhDs, and staff costs. You need to factor in salary increases, on-costs (superannuation and payroll) and casual loadings . Always use the salary level and step corresponding with the skills and tasks required for the role. See the Position Descriptors in the relevant University Enterprise Agreement .
• Equipment, maintenance and travel (outline why you are going and for how long)
• Teaching relief
• Other (e.g. Consumables).

Indirect costs are institution costs that benefit and support research activities at the institution. Although they are necessary for the conduct of research and may be incurred during the project, they are costs that do not directly address the approved research objectives of a grant.

Indirect cost examples:

• Operations and maintenance of buildings (e.g. libraries, labs, meeting venues, IT such as computer access, specialist software, databases, secure cloud storage)
• Insurance, legal and financial services
• Hazardous waste disposal, and
• Regulatory and research compliance and administration of research services

All external research activities are expected to contribute to indirect costs except :

• Nationally competitive grants, such as ARC and NHMRC. This includes all Category 1 schemes.
• Registered charities listed on the ACNC register (opens in a new window)
• Grants transferred from another university
• Funding bodies that exclude or limit overheads or administrative costs (i.e. indirect costs) in their rules or guidelines
• Scholarships and internships
• Official Western Partnership projects
• Travel award type grants or facility usage type grants (e.g. Endeavour Fellowships, AINSE grants)
• Projects costed under $100,000 are discounted by waiving Western’s portion of the indirect costs.

Indirect costs are calculated by determining the direct costs first and then applying the indirect costs formula:

e.g. Direct costs = $50,000 x (indirect cost % figure) = Total project cost

Cash and in-kind support

Your project budget needs to include all cash and in-kind items it requires.

In-kind support is any non-cash contributions that a party gives to the project. In-kind can be contributed by Western Sydney University or by an external party, and can include:

• staff (e.g. time committed to the project which is not funded by the project)
• non-staff/infrastructure (e.g. if you are using lab space to conduct the project but are not receiving direct payment from the project to 'buy out' lab space)
• indirect costs

How to budget personnel and salaries

On-costs are direct costs associated with salary. These costs relate to superannuation, sick leave, payroll tax etc. and must be included your budget.

Access this link for more detail about Western on-costs

For the latest salary figures, please check with the Office of People

An example:

You are a Lead Chief Investigator (CI) on a non-Category 1 funding body project for one year. You commit 0.4 (FTE) of your time to the research = 2 days per week. You are paid at Academic Level E, Step 2, which is $188,944 per annum. You can calculate your salary inclusive of 28% on-costs as follows:

0.4 x 0.28 x 188,944 = 21,161.73

The budgeting of your salary, a direct cost of the research, should be listed as $21,161.73.

If your project covers three years, with the same or differing time commitments, you calculate this figure for each year of your project. Remember to factor in pay rises according to Step increases in multi-year grants.

You may also have a research assistant employed full-time for seven weeks at HEW Level 5, Step 3. You hire the assistant at the casual hourly rate of $48.97, which includes 25% leave loading. You add 16.5% on-costs to this figure:

48.97 x (35 x 7) = 11,997.65

11,997.65 x .165 = 1,979.50

1,979.50 + 11,997.65 = 13,977.15

The total cost to employ the research assistant is $13,977.15.

Note 1: the maximum period a person can be employed on a casual rate is 6 months.

Note 2: For some schemes, the funding provider stipulates a specific maximum rate for funding of salary on-costs, e.g. the Australian Research Council (ARC) funds on-costs at a rate of 30%, so you must use this figure.

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Appendix C: Sample Budget Justification

Costs for project budgets - appendix c.

The budget justification is one of the most important non-technical sections of the proposal, and it is often required by the sponsor. In this section, the Principal Investigator (PI) provides additional detail for expenses within each budget category and articulates the need for the items/expenses listed. The information provided in the budget justification may be the definitive criteria used by sponsor review panels and administrative officials when determining the amount of funding to be awarded.

The following format is a sample only; not all components will apply to every proposal. Many sponsors prefer that budget justifications follow their own format. In all cases, however, it is best to present the justification for each budget category in the same order as that provided in the budget itself.

Salaries and Wages:

Note: The quantification of  unfunded  effort (e.g., "The PI will donate 5% effort...") in the proposal narrative, budget, or budget justification is considered Voluntary Committed Cost Sharing. This is a legal commitment which must be documented in the University's accounting system. Consider quantifying effort  only  for the requested salary support. See  http://www.dfa.cornell.edu/treasurer/policyoffice/policies/volumes/academic/costsharing.cfm  for additional information.

• Principal Investigator:  This proposal requests salary support for _______% of effort during the academic year and 100% of effort for _______months during the summer.
• Other Professional Support:  List title and level of effort to be proposed to be funded. Other personnel categories (Research Associates, Postdoctoral Associates, Technicians) may be included here.
• Administrative and Clerical:  List the circumstances for requiring direct charging of these services, which must be readily and specifically identifiable to the project with a high degree of accuracy. Provide a brief description of actual job responsibilities, the proposed title, and the level of effort. (See note at the end of this Appendix regarding direct charging costs that are normally considered indirect.)
• Graduate Students:  List number and a brief description of project role. Include stipend, GRA allowance (tuition), and health insurance.
• Undergraduate Students:  List number and a brief description of project role.
• Employee Benefits have been proposed at a rate of ______% for all non-student compensation as approved by the Department of Health and Human Services. See  https://www.dfa.cornell.edu/capitalassets/cost/employee .

Capital Equipment:  The following equipment will be necessary for the completion of the project: Include item description(s), estimated cost of each item, and total cost. Provide a brief statement on necessity and suitability.

Travel:  For each trip, list destination, duration, purpose, relationship to the project, and total cost. Indicate any plans for foreign travel.

Technical Supplies and Materials:  Include type of supplies, per unit price, quantity, and cost. When the cost is substantial, provide a brief statement justifying the necessity.

Publications:  Page charges (number of pages multiplied by the per-page charge).

Services:  Include type of services, cost per type, and total cost.

Consultants : Include the consultant's name, rate, number of days, total cost per consultant, and total consultant cost. Provide a brief statement outlining each individual's expertise and justifying the anticipated need for consultant services. Note: Justifying a specific consultant in the proposal may avoid the need to competitively bid consulting services.

Subcontracts:  Include the subcontractor's name, amount, and total cost. Provide a brief description of the work to be performed and the basis for selection of the subcontractor. A separate budget and corresponding budget justification should be completed by the subcontractor, and is required by many agencies. Note: Justifying a specific subcontractor in the proposal may avoid the need to competitively bid subcontracted services. Post-award changes to subcontracts (additions, deletions, scope or budget modification) may require sponsor approval.

Other Expenses:  May include conferences and seminars (see  Appendix D ), Repair and Maintenance, Academic and User Fees.

Facilities and Administrative Costs (F&A) : F&A costs have been proposed at a rate of _____% of Modified Total Direct Cost (MTDC) as approved in Cornell's rate agreement with the Department of Health and Human Services. A copy of this agreement may be found at  https://www.dfa.cornell.edu/capitalassets/cost/facilities . MTDC exclusions include Capital Equipment, GRA Allowance and Health Insurance, and Subcontract costs in excess of $25,000 per subcontract.

Annual escalations are proposed in accordance with University policy as outlined HERE .

Special information for direct charging costs that are normally considered indirect.  Many costs such as administrative and clerical salaries, office supplies, monthly telephone and network charges, general purpose equipment, and postage are not typically considered direct costs. These may be proposed as direct costs where "unlike and different" circumstances exist. In such cases a budget justification detailing the request must be submitted to OSP for review and approval. Please read the University policy at  https://www.dfa.cornell.edu/sites/default/files/policy/vol3_14.pdf  or contact your  Grant and Contract Officer  for additional assistance.

Overview of Costs for Project Budgets (Budget and Costing Guide)

Appendix a: sample budget format showing major categories, appendix b: facilities and administrative (f&a) cost calculation detail, appendix d: sample budget for conferences and seminars, appendix e: cost sharing allowability matrix.

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Top 7 Research Budget Templates with Samples and Examples

Tejas Prasanna

There is no magic formula for creating a research budget. Depending on the kind of research and the potential changes it can bring about, careful planning and allocation is necessary. Budgets can, thus, vary depending on the sponsors, besides other factors. However, every research budget has some essential guidelines. 

Research budgets depend on the project deliverables, timelines, and milestones. The resources required also depend on the scope of the projects and sponsors.

Best Templates for Planning Your Research Budget

Designing a research budget is not easy. You will need to consider the resources required and categorize them according to guidelines to ensure funding is not a problem. The categories may include the project’s necessary supplies and equipment and the wages you must pay your assistants. Research budgets are allocated for a year, but you can also plan for a quarter, depending on the project.

At SlideTeam, we have taken care of all these pain points and designed content-ready presentation templates that address each of these points. You save the time, the resources, and the tedium in having to make these presentations from scratch. 

What is even better is that each of the templates is 100% editable and customizable. The content-ready nature means you get a starting point and a structure to guide your presentation; the editability feature means you can customize the template to audience profile. 

Let’s explore these templates now. 

Template 1 - Impact matrix evaluation research solution budget

This PPT Template is the perfect solution for your research budgeting needs. The matrix suggests what solutions are essential with the help of relevant keys that assign priority levels. Priorities go from low to highest influence with increasing importance. They are color-coded, with white being the lowest and red being the highest influence. For instance, Maintain Awareness and Evaluation are red in many cases, as shown in the slide. So, that means that they bear a significant impact on the research budget. Similarly, Strategic and Budget Planning are color-coded white, which means they don't impact the research budget as much in some cases.

With the impact matrix and heatmap, mapping out your research budget will be a breeze.

Get it now!

Template 2  Half-yearly research and development departmental budget

Research and Development departments can plan the budget required for projects for the two halves of the year using this PPT Template. The presentation template highlights areas for which you will need funding such as research and development, skills, innovation and patenting, and cooperation. You can also list your requirements for each area. For instance, under R&D and skills, you may need funding for medical research, chemical research, etc. Similarly, for innovation and patenting, you may need funding for product innovation and to cover patenting costs. Likewise, cooperation may involve setting up new laboratories and research centers. With this outlined, you can split the budget required for your research project for the two halves of the year.

Download now!

Template 3 - Budget Estimate for Research and Development Project

This presentation template for the budget estimate for your research and development project is apt for arriving at the calculation for the four quarters in a year. You can define and assign tasks as per the requirements of the project and allocate a set budget for each. The tasks may involve conducting market research and competitive analysis or be innovative or developmental. In either case, you can use this template to set a fixed budget for each task in the research project.

Get it today!

Template 4 Clinical Trial Phases with Communication and Budget Research Design for Clinical Trials

Clinical trials involve many phases, and you should let your research associates know about each step. For instance, you could post the information on the company website and provide relevant insights during the pre-trial phase. Similarly, you can offer the welcome letter and training materials during the trial start-up. During the trial, you can send newsletters to your associates, giving them relevant information and other valuable insights. All this requires funding, and you will need to allocate a budget. However, you don't need to worry, as this PPT Preset has you sorted, with dedicated sections for the pre-trial, trial start-up, during-trial, and trial-end phases. It also has communication, insights summary, and budget sections. You can use the budget section in the matrix to allot a budget for each trial phase and each section, including communication and insights. 

Download here!

Template 5  Market research strategy with budget and area

The PPT Template has all the core elements required for your market research strategy, including the budget and area. This slide lets you list your clients, the items, and when to send them. You can also list background information related to your research, the aim and objectives of the project, the areas covered, and the budget.

The presentation template also provides a dedicated space to list your brands and products and a timeline for completing the research.

Template 6 - Determine Budget for Psychology Research Proposal One-Pager Sample Example Document

This presentation template is an easy-to-use tool for determining the budget required for psychology research. With this slide, you can allocate a budget for each area, including diagnostic assessment, training, technology and tools, supplies, travel, and workforce. It is a practical, hands-on template with information required to plan the budget for conducting psychological tests and evaluations. Please note that depending on your geography, taxes might or might not deserve a separate column.  

Template 7 - Budgeting for Product Launch Market Research

Every company needs to conduct market research before launching a new product. The PowerPoint Presentation that you have here can help you plan the budget required for conducting such market research. It includes necessary information, including business and research objectives, priorities, methodologies, and forecasts. The presentation template also has the metrics required for the research, such as improving customer engagement, introducing new products, and increasing market share. For example, to improve customer engagement, you may be looking to improve marketing approaches and gather customer feedback. The methods you may use include conducting marketing mix studies and tests. Similarly, you may want to optimize your social media posts and profiles and conduct A/B tests when introducing new products. Improving your market share may involve analyzing the competition. You may even use this handy template for conducting market research, estimating, and forecasting budgets.

RESEARCH IS IMPORTANT BUSINESS

You can plan your research and the budget required using these templates. Remember that each new product launch has lots of research behind it. When going for a new launch, don’t just research the products and its uses, but also the markets – particularly, your target audience and how they will benefit from your brands. When allocating the budget for your research, don't forget to note your total resources and try to be as cost-effective as possible. You must consider the expected costs that you may incur and use these templates to work out a research budget that fits within your resources.

FAQs on Research Budget

What should be included in a research budget.

Research budgets should include all direct costs, and facilities and administrative costs (F&A). The facilities and administrative expenses are needed to achieve the primary objectives of the research. The project description should state the proposed budget and serve as a financial expression for the research. The idea is to ensure that the budget is comprehensive.

How do you create a research budget?

You can create a simple research budget by following these steps:

• List activities that will help you carry out the research.
• Check the rules for getting the funding required.
• Check all costs involved.
• Lay out the costs using a spreadsheet.
• Justify your budget by asking why and for what you need the money and where you got your figures.

What is the role of budget in research?

A budget can provide a detailed and clear picture of the structure of the research project, not to mention that it also lets you know how well it can be managed. The research project budget usually lets you see whether it will go according to plan and if it is feasible. So, it must be complete and reasonable.

What is the average budget for a research project?

The budget for a research project depends on the type of research and the proposed difference it could make to a field of study. For instance, the average budget for a market research project may vary between $20,000 and $50,000. Similarly, larger scientific research projects may cost millions or even billions of dollars, as in pharmaceuticals.

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17 Research Proposal Examples

A research proposal systematically and transparently outlines a proposed research project.

The purpose of a research proposal is to demonstrate a project’s viability and the researcher’s preparedness to conduct an academic study. It serves as a roadmap for the researcher.

The process holds value both externally (for accountability purposes and often as a requirement for a grant application) and intrinsic value (for helping the researcher to clarify the mechanics, purpose, and potential signficance of the study).

Key sections of a research proposal include: the title, abstract, introduction, literature review, research design and methods, timeline, budget, outcomes and implications, references, and appendix. Each is briefly explained below.

Watch my Guide: How to Write a Research Proposal

Get your Template for Writing your Research Proposal Here (With AI Prompts!)

Research Proposal Sample Structure

Title: The title should present a concise and descriptive statement that clearly conveys the core idea of the research projects. Make it as specific as possible. The reader should immediately be able to grasp the core idea of the intended research project. Often, the title is left too vague and does not help give an understanding of what exactly the study looks at.

Abstract: Abstracts are usually around 250-300 words and provide an overview of what is to follow – including the research problem , objectives, methods, expected outcomes, and significance of the study. Use it as a roadmap and ensure that, if the abstract is the only thing someone reads, they’ll get a good fly-by of what will be discussed in the peice.

Introduction: Introductions are all about contextualization. They often set the background information with a statement of the problem. At the end of the introduction, the reader should understand what the rationale for the study truly is. I like to see the research questions or hypotheses included in the introduction and I like to get a good understanding of what the significance of the research will be. It’s often easiest to write the introduction last

Literature Review: The literature review dives deep into the existing literature on the topic, demosntrating your thorough understanding of the existing literature including themes, strengths, weaknesses, and gaps in the literature. It serves both to demonstrate your knowledge of the field and, to demonstrate how the proposed study will fit alongside the literature on the topic. A good literature review concludes by clearly demonstrating how your research will contribute something new and innovative to the conversation in the literature.

Research Design and Methods: This section needs to clearly demonstrate how the data will be gathered and analyzed in a systematic and academically sound manner. Here, you need to demonstrate that the conclusions of your research will be both valid and reliable. Common points discussed in the research design and methods section include highlighting the research paradigm, methodologies, intended population or sample to be studied, data collection techniques, and data analysis procedures . Toward the end of this section, you are encouraged to also address ethical considerations and limitations of the research process , but also to explain why you chose your research design and how you are mitigating the identified risks and limitations.

Timeline: Provide an outline of the anticipated timeline for the study. Break it down into its various stages (including data collection, data analysis, and report writing). The goal of this section is firstly to establish a reasonable breakdown of steps for you to follow and secondly to demonstrate to the assessors that your project is practicable and feasible.

Budget: Estimate the costs associated with the research project and include evidence for your estimations. Typical costs include staffing costs, equipment, travel, and data collection tools. When applying for a scholarship, the budget should demonstrate that you are being responsible with your expensive and that your funding application is reasonable.

Expected Outcomes and Implications: A discussion of the anticipated findings or results of the research, as well as the potential contributions to the existing knowledge, theory, or practice in the field. This section should also address the potential impact of the research on relevant stakeholders and any broader implications for policy or practice.

References: A complete list of all the sources cited in the research proposal, formatted according to the required citation style. This demonstrates the researcher’s familiarity with the relevant literature and ensures proper attribution of ideas and information.

Appendices (if applicable): Any additional materials, such as questionnaires, interview guides, or consent forms, that provide further information or support for the research proposal. These materials should be included as appendices at the end of the document.

Research Proposal Examples

Research proposals often extend anywhere between 2,000 and 15,000 words in length. The following snippets are samples designed to briefly demonstrate what might be discussed in each section.

1. Education Studies Research Proposals

See some real sample pieces:

• Assessment of the perceptions of teachers towards a new grading system
• Does ICT use in secondary classrooms help or hinder student learning?
• Digital technologies in focus project
• Urban Middle School Teachers’ Experiences of the Implementation of
• Restorative Justice Practices
• Experiences of students of color in service learning

Consider this hypothetical education research proposal:

The Impact of Game-Based Learning on Student Engagement and Academic Performance in Middle School Mathematics

Abstract: The proposed study will explore multiplayer game-based learning techniques in middle school mathematics curricula and their effects on student engagement. The study aims to contribute to the current literature on game-based learning by examining the effects of multiplayer gaming in learning.

Introduction: Digital game-based learning has long been shunned within mathematics education for fears that it may distract students or lower the academic integrity of the classrooms. However, there is emerging evidence that digital games in math have emerging benefits not only for engagement but also academic skill development. Contributing to this discourse, this study seeks to explore the potential benefits of multiplayer digital game-based learning by examining its impact on middle school students’ engagement and academic performance in a mathematics class.

Literature Review: The literature review has identified gaps in the current knowledge, namely, while game-based learning has been extensively explored, the role of multiplayer games in supporting learning has not been studied.

Research Design and Methods: This study will employ a mixed-methods research design based upon action research in the classroom. A quasi-experimental pre-test/post-test control group design will first be used to compare the academic performance and engagement of middle school students exposed to game-based learning techniques with those in a control group receiving instruction without the aid of technology. Students will also be observed and interviewed in regard to the effect of communication and collaboration during gameplay on their learning.

Timeline: The study will take place across the second term of the school year with a pre-test taking place on the first day of the term and the post-test taking place on Wednesday in Week 10.

Budget: The key budgetary requirements will be the technologies required, including the subscription cost for the identified games and computers.

Expected Outcomes and Implications: It is expected that the findings will contribute to the current literature on game-based learning and inform educational practices, providing educators and policymakers with insights into how to better support student achievement in mathematics.

2. Psychology Research Proposals

See some real examples:

• A situational analysis of shared leadership in a self-managing team
• The effect of musical preference on running performance
• Relationship between self-esteem and disordered eating amongst adolescent females

Consider this hypothetical psychology research proposal:

The Effects of Mindfulness-Based Interventions on Stress Reduction in College Students

Abstract: This research proposal examines the impact of mindfulness-based interventions on stress reduction among college students, using a pre-test/post-test experimental design with both quantitative and qualitative data collection methods .

Introduction: College students face heightened stress levels during exam weeks. This can affect both mental health and test performance. This study explores the potential benefits of mindfulness-based interventions such as meditation as a way to mediate stress levels in the weeks leading up to exam time.

Literature Review: Existing research on mindfulness-based meditation has shown the ability for mindfulness to increase metacognition, decrease anxiety levels, and decrease stress. Existing literature has looked at workplace, high school and general college-level applications. This study will contribute to the corpus of literature by exploring the effects of mindfulness directly in the context of exam weeks.

Research Design and Methods: Participants ( n= 234 ) will be randomly assigned to either an experimental group, receiving 5 days per week of 10-minute mindfulness-based interventions, or a control group, receiving no intervention. Data will be collected through self-report questionnaires, measuring stress levels, semi-structured interviews exploring participants’ experiences, and students’ test scores.

Timeline: The study will begin three weeks before the students’ exam week and conclude after each student’s final exam. Data collection will occur at the beginning (pre-test of self-reported stress levels) and end (post-test) of the three weeks.

Expected Outcomes and Implications: The study aims to provide evidence supporting the effectiveness of mindfulness-based interventions in reducing stress among college students in the lead up to exams, with potential implications for mental health support and stress management programs on college campuses.

3. Sociology Research Proposals

• Understanding emerging social movements: A case study of ‘Jersey in Transition’
• The interaction of health, education and employment in Western China
• Can we preserve lower-income affordable neighbourhoods in the face of rising costs?

Consider this hypothetical sociology research proposal:

The Impact of Social Media Usage on Interpersonal Relationships among Young Adults

Abstract: This research proposal investigates the effects of social media usage on interpersonal relationships among young adults, using a longitudinal mixed-methods approach with ongoing semi-structured interviews to collect qualitative data.

Introduction: Social media platforms have become a key medium for the development of interpersonal relationships, particularly for young adults. This study examines the potential positive and negative effects of social media usage on young adults’ relationships and development over time.

Literature Review: A preliminary review of relevant literature has demonstrated that social media usage is central to development of a personal identity and relationships with others with similar subcultural interests. However, it has also been accompanied by data on mental health deline and deteriorating off-screen relationships. The literature is to-date lacking important longitudinal data on these topics.

Research Design and Methods: Participants ( n = 454 ) will be young adults aged 18-24. Ongoing self-report surveys will assess participants’ social media usage, relationship satisfaction, and communication patterns. A subset of participants will be selected for longitudinal in-depth interviews starting at age 18 and continuing for 5 years.

Timeline: The study will be conducted over a period of five years, including recruitment, data collection, analysis, and report writing.

Expected Outcomes and Implications: This study aims to provide insights into the complex relationship between social media usage and interpersonal relationships among young adults, potentially informing social policies and mental health support related to social media use.

4. Nursing Research Proposals

• Does Orthopaedic Pre-assessment clinic prepare the patient for admission to hospital?
• Nurses’ perceptions and experiences of providing psychological care to burns patients
• Registered psychiatric nurse’s practice with mentally ill parents and their children

Consider this hypothetical nursing research proposal:

The Influence of Nurse-Patient Communication on Patient Satisfaction and Health Outcomes following Emergency Cesarians

Abstract: This research will examines the impact of effective nurse-patient communication on patient satisfaction and health outcomes for women following c-sections, utilizing a mixed-methods approach with patient surveys and semi-structured interviews.

Introduction: It has long been known that effective communication between nurses and patients is crucial for quality care. However, additional complications arise following emergency c-sections due to the interaction between new mother’s changing roles and recovery from surgery.

Literature Review: A review of the literature demonstrates the importance of nurse-patient communication, its impact on patient satisfaction, and potential links to health outcomes. However, communication between nurses and new mothers is less examined, and the specific experiences of those who have given birth via emergency c-section are to date unexamined.

Research Design and Methods: Participants will be patients in a hospital setting who have recently had an emergency c-section. A self-report survey will assess their satisfaction with nurse-patient communication and perceived health outcomes. A subset of participants will be selected for in-depth interviews to explore their experiences and perceptions of the communication with their nurses.

Timeline: The study will be conducted over a period of six months, including rolling recruitment, data collection, analysis, and report writing within the hospital.

Expected Outcomes and Implications: This study aims to provide evidence for the significance of nurse-patient communication in supporting new mothers who have had an emergency c-section. Recommendations will be presented for supporting nurses and midwives in improving outcomes for new mothers who had complications during birth.

5. Social Work Research Proposals

• Experiences of negotiating employment and caring responsibilities of fathers post-divorce
• Exploring kinship care in the north region of British Columbia

Consider this hypothetical social work research proposal:

The Role of a Family-Centered Intervention in Preventing Homelessness Among At-Risk Youthin a working-class town in Northern England

Abstract: This research proposal investigates the effectiveness of a family-centered intervention provided by a local council area in preventing homelessness among at-risk youth. This case study will use a mixed-methods approach with program evaluation data and semi-structured interviews to collect quantitative and qualitative data .

Introduction: Homelessness among youth remains a significant social issue. This study aims to assess the effectiveness of family-centered interventions in addressing this problem and identify factors that contribute to successful prevention strategies.

Literature Review: A review of the literature has demonstrated several key factors contributing to youth homelessness including lack of parental support, lack of social support, and low levels of family involvement. It also demonstrates the important role of family-centered interventions in addressing this issue. Drawing on current evidence, this study explores the effectiveness of one such intervention in preventing homelessness among at-risk youth in a working-class town in Northern England.

Research Design and Methods: The study will evaluate a new family-centered intervention program targeting at-risk youth and their families. Quantitative data on program outcomes, including housing stability and family functioning, will be collected through program records and evaluation reports. Semi-structured interviews with program staff, participants, and relevant stakeholders will provide qualitative insights into the factors contributing to program success or failure.

Timeline: The study will be conducted over a period of six months, including recruitment, data collection, analysis, and report writing.

Budget: Expenses include access to program evaluation data, interview materials, data analysis software, and any related travel costs for in-person interviews.

Expected Outcomes and Implications: This study aims to provide evidence for the effectiveness of family-centered interventions in preventing youth homelessness, potentially informing the expansion of or necessary changes to social work practices in Northern England.

Research Proposal Template

Get your Detailed Template for Writing your Research Proposal Here (With AI Prompts!)

This is a template for a 2500-word research proposal. You may find it difficult to squeeze everything into this wordcount, but it’s a common wordcount for Honors and MA-level dissertations.

Your research proposal is where you really get going with your study. I’d strongly recommend working closely with your teacher in developing a research proposal that’s consistent with the requirements and culture of your institution, as in my experience it varies considerably. The above template is from my own courses that walk students through research proposals in a British School of Education.

Chris Drew (PhD)

Dr. Chris Drew is the founder of the Helpful Professor. He holds a PhD in education and has published over 20 articles in scholarly journals. He is the former editor of the Journal of Learning Development in Higher Education. [Image Descriptor: Photo of Chris]

• Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ 5 Top Tips for Succeeding at University
• Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ 50 Durable Goods Examples
• Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ 100 Consumer Goods Examples
• Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ 30 Globalization Pros and Cons

8 thoughts on “17 Research Proposal Examples”

Very excellent research proposals

very helpful

Very helpful

Dear Sir, I need some help to write an educational research proposal. Thank you.

Hi Levi, use the site search bar to ask a question and I’ll likely have a guide already written for your specific question. Thanks for reading!

very good research proposal

Thank you so much sir! ❤️

Very helpful 👌

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Compile a research budget

Get started with your grant application budget plan..

TOP TIP: Each call has different guidelines for what may or may not be included within the budget for your project. Read your call guidelines carefully.

Where to start

Research Design = List resources that you need to conduct the project. Include your time, staff and non-staff resources such as field work, travel, research assistance or software.

Decide on a start date and project duration = The project start date (if your application is awarded) will depend on when you plan to submit your application and the assessment cycle of the funding body.

Consider the time required to recruit staff = If applicable, do you need staff at the start of your awarded project?

Devise a realistic budget plan according to the funder’s requirements and LSE’s financial regulations. Your Research Development Manager will help you compile your budget.

Contact us to compile your budget

Email your  Research Development Manager .

8 costs to examine when preparing your project budget:

1. staff salaries.

Staff salaries are often the largest cost of the budget.

Allocate enough money for staffing costs and think about what staff roles the project requires.

How do I determine which level is appropriate?

Consider the amount of time you wish to spend on the project as well as the amount of research assistance and expertise required.

You may need administrative support if you plan on sending out a large number of questionnaires and have a lot of data entry to do. If the study is complex, you may want a senior research fellow with previous experience. It will cost more but it will be an expense worth paying for.

View research staff role profiles

View salary scales

Extra staff costs

In addition, there will be extra costs to include, such as:

• recruitment advertising 
• redundancy expenses
• pension costs
• national insurance contributions

Named staff

Follow School procedures for including named staff in proposals. If you have a specific person in mind, contact your Research Development Manager .

Check local practice with your Department/Centre Manager as additional procedures on staffing salary levels may apply.

2. Indirect costs

Indirect costs can include:

• estates costs and institutional overheads
• the cost of using an office
• facilities such as HR, IT support and library services

Often a funding body will only pay a contribution towards these. Research and Innovation will calculate these costs based on a standard full economic costing.

To add these costs to your budget, email the  Research Development Team . 

3. Equipment

This could include items such as a digital recorder or a laptop for carrying out field work.

Some equipment may not be eligible depending on the funder’s regulations.

For example, the Economic and Social Research Council (ESRC) will normally expect a computer to be provided by the host institution. 

There are some exceptions - funding may be considered if a standard computer is not adequate for processing vast amounts of data.

Justify equipment explicitly in your proposal.  Contact us for further advice.

4. Consumables

Examples of standard project running costs include:

• printed brochures for dissemination events
• tea, coffee, lunch for meetings etc.
• postage and stationery
• photocopying
• computer supplies (toner)

5. Travel and subsistence

A project may require travel costs to allow you to:

• carry out field work
• attend a conference
• present findings for dissemination purposes
• meet co-investigators working on the project

Example travel costs

Estimate your budget with LSE's example cost guidelines .

Calculate travel rates  to cover the cost of subsistence and accommodation as well as flights and train costs. 

Some funding bodies have set criteria of what they are prepared to cover and may apply funding caps. For example, no business class flights; economy travel only.

Tell your  Research Development Manager :

• total number of trips needed
• number of people who need to travel
• year in which each trip will be taken 

6. Justification of resources

A common component of a project is the ‘justification of costs’, sometimes referred to as ‘resource allocation’. It's essential to spend time making this section clear. 

Expensive items

If an expensive item of equipment is crucial for the project, state how it will be used and why alternative options are not viable.

Staff costs

The same rule applies for the inclusion of those people who have specialised expertise – please state:

• what these staff will be doing
• why less costly options are not viable

Discuss your costs with the Research Development Team .

7. Research Grants Policy (formerly Research Incentives Policy) 

The Research Grants Policy provides financial rewards for staff who win research funding – to enhance their salaries, to buy out their time from teaching and/or to provide unencumbered research funding – and research funding for the departments and research centres which host them. 

It came into full effect from 1 August 2021 and applies partially to awards falling prior to this date but after the suspension of its predecessor, the Research Incentives Policy, in June 2020. View the Research Grants Policy

The Research Incentives Policy was suspended in June 2020 and remains active only for eligible legacy projects. It has been replaced by the Research Grants Policy. View the Research Incentives Policy

8. Ineligible costs

Each call has different guidelines for what may or may not be included within the budget for your project. 

Read call guidelines. If in doubt, check details with your Research Development Manager in the Research Development Team.

Contact us Get in touch today to discuss your research idea or project

Grant proposal writing Improve your chances of winning a grant with our top tips

Find funding Browse internal and external fellowships, travel grants, collaborative projects and more

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Budget Salaries for My Research Project

Salaries make up the largest category of direct costs on a sponsored project. When preparing a budget, start by making a list of all Stanford personnel who will support the proposed statement of work. If a person will be hired once the award is funded, simply estimate their salary and percentage of effort and list them as TBD (to be determined).

Project personnel salaries budgeted as direct costs

Stanford employees: the PI, co-PIs, co-investigators, ASR (Academic Staff Researchers), technical support staff, graduate students, research assistants, and administrative support staff (working directly on a major project), Stanford employees acting as collaborators.

Project Personnel salaries NOT budgeted as direct costs

Stanford Hospital and VA employees are not budgeted in the personnel budget category. Stanford Hospital employees are budgeted in “Patient Care.” Check with your  RPM (Research Process Manager) in the School of Medicine or OSR for advice regarding VA employees. Other non-Stanford employees may be proposed as consultants or as the personnel in a subaward.

Salary information to include in the budget:

1. The person's   role on the project (not job title) and the person's name 

Example: Rafael Nadal, Lead Protein Synthesizer   not  Rafael Nadal, Professional Tennis Player

2. The   percentage of effort or person months devoted to the project

This includes all responsibilities (including teaching and research) together and may not exceed 100% FTE. The portion of salary charged to the project is based on the percentage of FTE committed to the project. Remember that any percentage of effort committed in a proposal and subsequently devoted, must be accounted for later as project expenditure (either a direct project charge or cost sharing).

Nominal contributions of effort “as needed” may be included and NOT quantified. In this case, where no % FTE is specified, no cost sharing is committed. A “part-time” commitment, on the other hand, implies a specified % FTE, and that amount should be quantified. If awarded, “part-time” effort must be either directly charged or cost shared.

View how to convert percent effort to person months .  

3.  The   appointment type (academic, summer or calendar) 

Nine Month Appointment and Summer Effort A faculty member on a nine-month appointment can only be paid from sponsored projects up to 90% during any of the summer months. Salary charged to sponsored projects during the summer months must be consistent with effort expended during the same period.

Limits on Salary Amounts (Salary Caps)

NSF limits salary compensation for senior project personnel to no more than two months of their regular salary in any one year from all NSF-funded grants. This effort must be documented in accordance with the applicable cost principles.

If anticipated, any compensation for such personnel in excess of two months must be disclosed in the proposal budget, justified in the budget justification, and must be specifically approved by NSF in the award.

NIH will not pay requested salary above the annual salary cap. If salary is requested above the salary cap, NIH will reduce that line item to the salary cap, resulting in a reduced total award amount.  When preparing a detailed budget, you must base your request on actual institutional base salaries (not the cap) so that NIH staff has the most current information in hand at the time of award and can apply the appropriate salary cap at that time.

The DHHS (department of Health and Human Service) salary cap limits the amount which can be charged to a DHHS project (or related cost sharing account) by limiting the maximum annual salary rate for a 100%, 12-month FTE. The rate is set annually and applies to all awards made that year.

DHHS establishes the funding limitation for salaries at the time that a competitive award is made. However, if subsequent (non-competing) funding is awarded during a year with a higher salary cap, NIH will allow existing funds to be re-budgeted to that level. Typically, no new funds will be awarded for this purpose. 

• DHHS salary cap may change annually
• DHHS funds salary up to the level of the cap in effect on the award date
• Use a special expenditure type to capture difference between actual pay & what can be charged to a DHHS award

View Salary Cap  details

Other sponsors

Other sponsors such as Juvenile Diabetes Association may have salary caps. Read  the program announcement carefully to determine if a sponsor has a salary cap.

Proposal Preparation Costs

Proposal preparation costs (typically comprised of salary for the PI and/or others) may not be charged to sponsored projects unless the proposal is being prepared for submission to a current sponsor for a non-competing extension or continuation of its currently awarded project. In those circumstances, it is appropriate to charge those proposal preparation costs directly to current projects. Costs for development of proposals for submission to other sponsors, or for work that does not relate to ongoing projects, is not allocable to current projects and may not be charged to those projects.

Guidance for Budgeting Faculty Effort

Effort should be committed as anticipated by the program scope and reflected in the proposal as a percent of effort or in person months.

The equation for calculating man months is  % effort x months (academic year, calendar year or summer). 50% of a calendar year appointment is calculated as 50 x 12 = 6 mm

View more information on how to convert percent effort to person months .

Stanford requires a commitment of effort on the part of the PI during the period in which the work is being performed. This effort may be expended during the academic year, summer quarter only, or both. Committed effort shall be direct charged or cost shared.

The requirement of PI effort does NOT extend to:

• Equipment grants
• Seed grants for students/postdocs where the faculty mentor is named as PI, dissertation support, training grants or other awards intended as  student augmentation
• limited-purpose awards characterized by Stanford as Other Sponsored Activities, including travel grants, conference support, etc.  View definition and examples of Categories of Sponsored Projects

In preparing proposals, PIs must not over commit themselves or others. Distribution of effort must take into account the time required for teaching and campus citizenship.

Individual schools may have their own thresholds for how much FTE faculty members must reserve for non-research activities. Research-only faculty on 12-month appointments may typically charge up to 95% to sponsored projects year round. See below for requirements for summer salary.

PIs may submit proposals on the assumption that not all will be awarded, but, at the time of award, a reasonable representation of time to be devoted to the project, whether that effort will be paid for by the sponsor or by Stanford, is necessary. Subsequent changes in levels of effort may also require advance notification to and approval by sponsors.

View  RPH Special Requirements Related to Sponsor Notifications and Prior Approvals

A faculty member who is on a nine-month appointment may be paid from federal and/or non-federal sponsored projects for no more than 90% during any of the summer months. Salary charged to sponsored projects during the summer months must be consistent with effort expended during the same period.

View Frequently Asked Questions on Faculty Effort for more information

Stanford requires individuals new to the position of Principal Investigator (PI) to understand the regulatory environment in which sponsored research is conducted. Stanford requires each of its PIs to complete a brief course:  PI Training: Stewardship and Compliance for Principal Investigators . This course outlines the regulatory environment for sponsored research. It is comprised of two modules: 1) Research and Scholarship and 2) Financial Management.

Guidance for Budgeting Graduate Student and Postdoctoral Scholar

Graduate student assistantship.

This is a form of student employment in which the student earns a compensation package that includes both salary and TAL (tuition allowance) for the performance of research or teaching as part of the student’s academic and professional training and development.

Stanford establishes  Minimum Salary Rates for RA/TA Appointments .  Departments may establish their own guidelines as long as funding rates meet or exceed those established by Stanford.

View graduate students salary and tuition allowance here

(select Salary and TAL Tables on the top navigation of the page)

Note:  TA salary is not an appropriate charge on a research grant.  Also, stipends, tuition and health insurance are not appropriate charges on research grants other than federal training grants or federal fellowships.

NIH Special Requirements

NRSA Requirements (Graduate Student  & Pre and Post Doc Compensation) NIH Stipend Levels for 202 0

Stanford clarification: The Graduate Student Compensation Limit for Fiscal Year 2017 NRSA (National Research Service Award) awards research grants is tied to the "0" level of experience stipend level for postdocs. Therefore, the limit is $48,432 (salary plus benefits and tuition) when budgeting graduate students on research grants. 

Postdoctoral Scholars

The Stanford provost establishes minimum funding levels based on the years of cumulative research experience a Postdoctoral Scholar has accumulated when appointed. Departments may establish their own guidelines as long as funding rates meet or exceed those established by Stanford. If you have questions about funding rates or guidelines, please contact the  Office of Postdoctoral Affairs .

Staff Salaries by Project Role

You can list other personnel by project role. If multiple people share the same role such as “lab technician”, indicate the number of personnel to the left of the role description, add their person months/percent of effort together, and add their requested salaries together.

The salaries of secretarial/clerical staff should normally be treated as F&A costs. Direct charging of these costs may be appropriate where integral to the statement of work and individuals involved can be specifically identified with the project or activity. Be specific in your budget justifications when you describe the roles and responsibilities of other personnel.

Administrative Salaries as Direct Costs

While administrative salaries and expenses are normally charged through the F&A (Facilities & Administrative) cost rate, federal regulations describe when administrative and clerical salaries can be charged directly to federally sponsored projects.

You can propose charging administrative and clerical salaries to a federally sponsored project if ALL of the following conditions are met:

• Administrative or clerical services are integral to a project or activity. The requirement that the cost is “integral” means the services are essential, vital, or fundamental to the project or activity
• Individuals involved can be specifically identified with the project or activity
• A budget justification must be included in the proposal
• The cost are not also recovered as F&A costs

NIH modular grants  or similar grant instruments do not require line-item budgets. (Note: Rebudgeting authority may be used to charge administrative expenses not included in the approved budget if specific rebudgeting authority for clerical and administrative expenses is allowed by award and sponsor rebudgeting guidelines. See, for example,  NIH administrative requirements .)

All deans' office administrative activities must be consistently treated as F&A costs. Therefore, no deans' office administrative expenses shall be charged directly to sponsored awards . Deans' sponsored project activities are subject to RPH 15.4.3

Any other administrative costs that are required to perform the technical scope of work may be directly charged as long they provide technical benefit to the sponsored project.

Non-federally Sponsored Projects

Direct charging of administrative or clerical salaries to a non-federally sponsored project is appropriate if the services benefit the sponsored project. Some non-federal sponsors may have specific requirements for direct charging of administrative costs. Such requirements need to be addressed in proposals.

Read  RPH 15.4: Charging for Administrative and Technical Expenses

Budget Fringe Benefits

Fringe benefits are directly related to salary charges and require separate line items in the budget (apart from salary). There are four separate rates for the following employment statuses.

• Benefits-eligible faculty and staff
• Casual/temporary employees
• Graduate students Research Assistants /Teaching Assistants

The fringe benefit rate is applied to salaries to cover ancillary expenses such as retirement benefits, health and dental insurance, life and disability insurance, contributions to social security and retirement plans. 

The federal government reviews and negotiates the fringe benefit rate with Stanford. Use the most current rates by viewing the rate chart on the web. See  fringe benefit  rate here. An additional rate is added to the benefits rate for faculty and staff on non-governmental awards.

Applying TGP (Tuition Grant Program) Fringe Benefit Rate

The TGP (Tuition Grant Program) Fringe Rate is assessed on regular benefits eligible salaries charged to all NON-government funded PTAs including sponsored projects, operating budgets, and auxiliary PTAs.

Regular benefits-eligible salaries charged to government-funded PTAs, academic service centers and sponsored project cost sharing PTAs are exempt from the TGP charge.

The TGP charge is subject to facilities and administrative costs (F&A) and infrastructure charges. The TGP fringe benefit rates can be found on the  Rates  page of this site. The TGP charge appears in expenditure type 51770 Fringe Benefits TGP.

If you have any questions or need more information about the application of the TGP Rate, please contact the  University Budget Office  or ,  Research Administration Policy and Compliance, at extension 3-9102.

View the TGP Rate

Handling Vacation & Disability Sick Leave Accrual

Stanford's agreement with the Office of Naval Research provides for xx% vacation accrual/disability sick leave (DSL) for exempt and non-exempt employees. The vacation accrual/DSL rates will be charged at the time of the salary expenditure. No salary will be charged to the award when the employee is on vacation .

Include in the budget justification:

"Stanford's agreement with the Office of Naval Research provides for xx% vacation accrual/disability sick leave (DSL) for exempt employees and non-exempt employees.  The vacation accrual/DSL rates will be charged at the time of the salary expenditure.  No salary will be charged to the award when the employee is on vacation."

Created: 03.31.2021

Updated: 03.21.2024

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Biden unveils a budget that would cut costs for families and hike taxes for the rich

Rachel Treisman

Franco Ordoñez

Shalanda Young, director of the White House Office of Management and Budget, told NPR that the president's budget puts Congress on notice. Kevin Dietsch/Getty Images hide caption

Shalanda Young, director of the White House Office of Management and Budget, told NPR that the president's budget puts Congress on notice.

The White House unveiled a new $7.3 trillion federal budget proposal on Monday, a plan that would hike taxes on billionaires and large corporations to pay for programs that would cut costs for families.

Presidential budgets generally are not blueprints for bills that will ever become law. Presidents are required by law to release a budget and the practice has become an opportunity to put price tags on White House spending proposals. It's up to Congress to pass actual spending bills, since it has the power of the purse in the Constitution.

But the budget sends a message to voters — and to lawmakers, Shalanda Young, the director of the U.S. Office of Management and Budget, told Morning Edition 's A Martinez.

5 takeaways from President Biden's State of the Union address

"What that means is this president, unlike many who talk about fiscal responsibility, pays for every investment in the budget," Young said on NPR. "So we call on Congress: if they want to do something about our fiscal path, take up the president's budget. Ask the wealthiest in this country to begin to pay their fair share."

Young said the budget would cut taxes for millions of low and middle income families and would bring down the costs of prescription drugs and utility bills.

House Republican leaders dismissed the proposal, calling it "misguided" and full of "reckless spending."

My joint statement with @SteveScalise , @GOPMajorityWhip , and @RepStefanik on Biden’s budget proposal: pic.twitter.com/6StD9YAzMe — Speaker Mike Johnson (@SpeakerJohnson) March 11, 2024

The budget puts a price tag on Biden's plans from his State of the Union address

The budget builds on the State of the Union address Biden delivered last week, in which he outlined his administration's accomplishments and made the case for voters to reelect him, with a heavy dose of economic populism . It included tax credits for first-time homebuyers .

Speaking to the National League of Cities Monday, Biden said his plans would raise billions of dollars to help provide things that Americans need, like childcare, while also cutting the deficit.

"Look, I'm a capitalist. If you can make a billion bucks — wonderful," Biden said. "Just pay your fair share, man."

A debate on taxes is on the horizon

The plan would raise taxes on large corporations and make billionaires pay a minimum 25 percent rate, which would help reduce the federal government's budget deficit by some $3 trillion over a decade, the White House said.

"Congressional Republicans are on notice: You can't give your friends on Wall Street tax cuts, add to the debt, while middle-class and working families suffer," Young said.

The State of 'Shrinkflation': Why Biden called out skimpy bags of potato chips

Young said lawmakers will be pushed to have this debate soon, with several provisions of Republicans' 2017 tax law — which gave sweeping tax cuts to big corporations — set to expire next year . Biden will not support extending tax cuts for those that make over $400,000, Young said.

The president also wants to work with Congress on a mortgage reduction credit, which would give a $10,000 tax break to first-time homebuyers and people who sell their starter homes, among others.

"Families who are locked into mortgage rates that may be a bit higher but need to get to a bigger place — you have two kids and a third may have come along and you need a bigger place — we need to give these families a bridge so they can move to larger homes," Young said.

The broadcast interview was produced by Ben Abrams, Ana Perez and Shelby Hawkins.

• Economic policy
• president biden

Taxing the rich to cut deficit: Five takeaways from President Biden's proposed budget

WASHINGTON ― President Joe Biden released a federal budget Monday that carves out new social programs for housing, health care and child care and reduces the deficit by $3 trillion over the next decade by raising taxes on corporations and the wealthiest Americans.

Biden's $7.3 trillion budget for the 2025 fiscal year − a 4.7% increase over the current budget − seeks to boost defense spending by 1% and non-defense discretionary spending by 2.4%.

The spending complies with caps that House Republicans pushed in last year's Fiscal Responsibility Act in exchange for raising the debt limit . Although the budget has no chance of advancing in the Republican-controlled House of Representatives, it establishes Biden's priorities for the campaign and creates contrasts for an election rematch against presumptive Republican nominee Donald Trump .

"We are the only nation that has emerged from every crisis we have entered stronger than we went in. While my Administration has seen great progress since day one, there is still work to do. My Budget will help make that promise real," Biden wrote in a budget document to Congress.

Here are five takeaways on the budget:

Prep for the polls: See who is running for president and compare where they stand on key issues in our Voter Guide

Tax hikes on corporations, billionaires to cut deficit

Biden's budget proposes tax hikes on billionaires and corporations that would raise tax receipts by $4.9 trillion over the next 10 years to offset new programs, cutting the deficit by $3 trillion over the same period.

Biden has proposed reversing the corporate tax rate cut that Trump and congressional Republicans passed in 2017 by raising the rate to 28% from 21%.

Biden is also pushing to increase a new minimum tax on the largest billion-dollar corporations − which he signed into law in 2022 − from 15% to 21%.

The president's budget includes a new 25% minimum tax on the wealthiest 0.01% of Americans, which includes those with wealth of more than $100 million. He also is calling for new plans to deny tax deductions for corporations that pay any employee more than $1 million and close a loophole that gives tax breaks to owners of corporate jets.

"I'm a capitalist, man. Make all the money you want. Just begin to pay your fair share of taxes," Biden said in remarks in Goffstown, New Hampshire, discussing his budget proposal.

None of the tax plans is going to pass the Republican-controlled House, particularly during an election year. But they allow Biden to contrast his economic agenda against Trump's in an appeal to working-class voters.

House Speaker Mike Johnson came out in opposition to the budget immediately, calling it a "roadmap to accelerate America's decline."

“The price tag of President Biden’s proposed budget is yet another glaring reminder of this administration’s insatiable appetite for reckless spending and the Democrats’ disregard for fiscal responsibility," Johnson said.

The Trump campaign warned that Biden's tax overhaul would lead to immediate job losses.

Protecting Medicare and Social Security

Biden, who regularly accuses Republicans of wanting to slash Medicare and Social Security, bolsters spending for both entitlement programs in his budget.

Each is a major driver of a federal deficit expected to increase by $19.5 trillion over the next decade.

The budget proposes a plan to extend the solvency of Medicare indefinitely by increasing the Medicare tax rate on Americans who earn more than $400,000 a year, closing various tax loopholes in existing Medicare taxes and directing revenue from the Net Investment Income Tax.

Like last year's budget, the White House has not proposed a similar plan to extend the solvency of Social Security but has outlined steady spending increases over the next 10 years and vowed to protect the program for seniors and disabled Americans. The 2025 budget would spend 6.2% more on Social Security than the current year.

"Social Security and Medicare Social Security and Medicare are more than government programs," said Shalanda Young, director of the Office of Management and Budget. "They're a promise − a rock-solid guarantee that generations of Americans have counted on."

Biden and Democrats have long attacked Republicans by warning they can't be trusted to protect Medicare and Social Security. On Monday, the White House seized on remarks Trump made in an interview with CNBC in which the former president said, "There is a lot you can do in terms of entitlements, in terms of cutting."

Biden, speaking in New Hampshire, singled out Trump's remarks. "The bottom line is, he's still at it," Biden said. "I'm never gonna allow that to happen. I won't cut Social Security. I won't cut Medicare."

Billions for border security

Biden sought $13.6 billion in emergency funding from Congress last fall to manage the surge of arrivals at the U.S.-Mexico border. However, a bipartisan border security bill negotiated by the Senate was tanked by House Republicans at the request of Trump.

“Up to now, politics has intervened,” Biden said Monday in a speech to the National League of Cities. But, “we have to end the games.”

Biden’s budget proposal again calls for multiple measures to improve security and deal with immigration at the southern border.

The proposed budget includes $405 million to hire 1,300 additional Border Patrol agents to secure the border and $239 million for 1,000 additional Customs and Border Protection officers to stop fentanyl and other contraband from entering the country. It also proposes $755 million for hiring 1,600 asylum officers and support staff to timely handle immigration cases, and it includes another $849 million for cutting-edge technology to detect illicit drugs and other contraband at ports of entry.

In addition, Biden is asking for $1.3 billion to hire 375 new immigration judge teams to help reduce the backlog of immigration cases.

Biden is also proposing a $4.7 billion contingency fund that the Department of Homeland Security could tap into to boost security operations if there is a migrant surge at the southwest border. The fund would receive annual appropriations.

Child tax credit, aid for homebuyers and other cost-cutting measures for families

Biden proposes an expansion of the social safety net by offering several proposals to lower costs for families who are struggling financially.

Biden’s budget would restore the full child tax credit enacted in the American Rescue Plan, a $1.9 trillion economic stimulus package passed into law in 2021. Under the law, the maximum tax credit increased from $2,000 to $3,600 per child under age 6 and to $3,000 per child age 6 to 17. Congress allowed it to expire at the end of 2021.

Biden also is proposing a new program under which working families with incomes up to $200,000 per year would be guaranteed affordable, high-quality child care from birth until kindergarten. Under the proposal, most families would pay no more than $10 a day, while the lowest income families would pay nothing. The administration says the proposal would benefit the parents of more than 16 million children.

To help expand homeownership, Biden is proposing a new mortgage relief credit to help increase access to affordable housing. The proposal includes a new tax credit for middle-class, first-time homebuyers of up to $10,000 over two years. Biden is also calling on Congress to provide a one-year tax credit of up to $10,000 to middle-class families who sell their starter home.

And to lower health care costs, Biden has proposed making expanded premium tax credits from the Inflation Reduction Act permanent and providing Medicaid-like coverage to states that have not expanded Medicaid under the Affordable Care Act.

The budget builds on the administration's efforts to lower the cost of prescription drugs by accelerating the pace in which Medicare can negotiation directly with drug companies. The budget also proposes extending the $35 cap for a month's supply of insulin and expanding a $2,000 out-of-pocket cap on all prescription drugs beyond Medicare.

What happens next?

Biden’s spending plan now goes to Congress, which is in charge of writing the federal budget. Biden’s proposal will become the starting point for negotiations between lawmakers and the White House.

The Republican-controlled House is unlikely to go along with many of the president’s proposals, especially those to raise taxes on the wealthy, so when the final budget is passed, it is expected to look far different from the document that Biden proposed on Monday.

Biden Budget Plan Would Raise US Taxes by $4.951 Trillion Over Decade -Treasury

U.S. President Joe Biden speaks as he meets with Defense Secretary Lloyd Austin, Deputy Defense Secretary Kathleen Hicks and other military leaders in the Cabinet Room at the White House in Washington, U.S., April 20, 2022. REUTERS/Jonathan Ernst/ File Photo

By David Lawder

WASHINGTON (Reuters) - President Joe Biden's proposed U.S. government budget would raise tax receipts by $4.951 trillion over 10 years, including more than $2.7 trillion in tax hikes on businesses and nearly $2 trillion on wealthy individuals and estates, the U.S. Treasury said on Monday.

The budget plan also calls for an additional $104.3 billion in mandatory funding for the Internal Revenue Service on top of $80 billion won by the tax agency in 2022, the Treasury said in its "Green Book" estimates of the budget's revenue effects.

This additional funding would add $341 billion in new revenues over the 10-year period compared with current funding, the Treasury said.

The tax increases are part of Biden's election-year budget wish list, which also includes new programs to assist low- and middle-income Americans with high housing and childcare costs and aims to cut the deficit. Congress is likely to discard the proposals, but the document forms a central campaign message for Biden.

PLUGGING SHORTFALLS

The Treasury estimated that reforms to international business taxation, driven by implementation of a 2021 global 15% minimum tax deal by 137 countries, would add $632.2 billion to U.S. receipts over 10 years. But even with the addition of a higher U.S. overseas minimum tax of 21%, this is well below last year's estimate of about $1.16 trillion.

A U.S. Treasury official told reporters the reduction was due to revised assumptions that fewer countries would adopt the minimum tax apart from Britain, Japan, the European Union, Mauritius and Vietnam.

The reduction was made up elsewhere, including through an increase in the domestic large-company minimum tax to 21% from 15%, which the Treasury estimates would raise $137.4 billion over 10 years. It estimates that a new proposed ban on companies' ability to deduct non-CEO and CFO employee compensation above $1 million would raise $271.9 billion over 10 years.

Elimination of tax breaks for fossil fuel energy companies would raise $45.1 billion in new revenues over the decade through 2034, while raising the overall corporate tax rate to 28% from 21% would raise $1.35 trillion, Treasury estimated.

TAX THE RICH

The Treasury estimated that provisions to raise taxes on wealthy individuals, new rules for estate transfers, and limiting high-income individuals' use of tax-advantaged retirement accounts would raise $1.96 trillion.

That total includes Biden's "billionaire tax," which would impose a 25% minimum tax on individuals with wealth of over $100 million. The Treasury estimated it would raise $502 billion over the decade.

The Treasury again proposed more funding for the IRS to conduct more audits of wealthy individuals and complex business partnerships. The Treasury has recently increased its internal estimates of the revenues that could be collected from the IRS modernization efforts.

The budget also includes a number of new proposals to help Americans cope with the high cost of housing, including a $10,000 tax credit over two years to help offset high interest costs for first-time homebuyers and a one-time $10,000 credit for sellers of "starter homes" to increase market inventory.

Together these would cost $47.3 billion over the 10-year period, the Treasury said.

The budget's overall tax proposals to assist moderate-income families, including the housing credits and expanded tax credits for children and health insurance premiums, would cost $764.9 billion over 10 years, the Treasury said.

(Reporting by David Lawder; Editing by Andrea Ricci and Jonathan Oatis)

Copyright 2024 Thomson Reuters .

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President Biden Outlines Vision for Higher, More Complicated Taxes in State of the Union Address and FY 2025 Budget

Latest updates.

• Updated to reflect the latest details in President Biden's FY 2025 budget.
• Originally published following President Biden's 2024 State of the Union Address.

Last week, President Biden’s 2024 State of the Union Address presented a vision of higher taxes for American businesses and high earners combined with carveouts, credits, and more complex rules for taxpayers at all income levels. On Monday, the president released his proposed budget for fiscal year 2025 outlining how the White House would implement the president’s tax A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. vision, amounting to a gross tax hike exceeding $5.1 trillion over 10 years.

Rather than aiming for a simpler tax code that broadly encourages investment, saving, and work in the United States , the president has promised higher taxes that would decrease economic output and incomes, reduce U.S. competitiveness, and further complicate the tax code.

While the Biden budget claims to reduce deficits as a share of the economy over the next decade, that claim is based on several unrealistic assumptions, including:

• No extension of the individual and estate tax An estate tax is imposed on the net value of an individual’s taxable estate, after any exclusions or credits , at the time of death. The tax is paid by the estate itself before assets are distributed to heirs. cuts from the 2017 Tax Cuts and Jobs Act ( TCJA ) that are set to expire at the end of 2025, despite signaling interest in extending the tax cuts for people earning under $400,000, which would cost at least $1.4 trillion over the 10-year budget window
• No extension of the administration’s proposed expansion of the child tax credit beyond 2025, which would cost more than $1 trillion over the budget window
• Economic growth well in excess of what is forecast by the Congressional Budget Office ( CBO )

The FY 2025 Biden budget includes the following major changes, beginning in 2024 unless otherwise noted:

Major Business Tax Provisions in Biden Budget

• Increase the corporate tax rate from 21 percent to 28 percent
• Increase the corporate alternative minimum tax (CAMT) on book income Book income is the amount of income corporations publicly report on their financial statements to shareholders. This measure is useful for assessing the financial health of a business but often does not reflect economic reality and can result in a firm appearing profitable while paying little or no income tax. tax rate from 15 percent to 21 percent
• Disallow deductions for employee compensation above $1 million
• Quadruple the stock buyback tax from 1 percent to 4 percent
• Make permanent the excess business loss limitation for pass-through businesses
• Eliminate the foreign-derived intangible deduction ( FDII ) and replace it with unspecified research & development (R&D) incentives
• Repeal the base erosion and anti-abuse tax ( BEAT ) and replace it with an undertaxed profits rule ( UTPR ) consistent with the OECD/G20 global minimum tax model rules
• Raise taxes on fossil fuel companies and oil extraction

Major Individual, Capital Gains, and Estate Tax Provisions in Biden Budget

• Expand the base of the net investment income tax (NIIT) to include nonpassive business income and increase the rates for the NIIT and the additional Medicare tax to reach 5 percent on income above $400,000
• Increase top individual income tax An individual income tax (or personal income tax) is levied on the wages, salaries, investments, or other forms of income an individual or household earns. The U.S. imposes a progressive income tax where rates increase with income. The Federal Income Tax was established in 1913 with the ratification of the 16th Amendment . Though barely 100 years old, individual income taxes are the largest source of tax revenue in the U.S. rate to 39.6 percent on income above $400,000 for single filers and $450,000 for joint filers
• Tax long-term capital gains and qualified dividends at ordinary income tax rates for taxable income Taxable income is the amount of income subject to tax, after deductions and exemptions. For both individuals and corporations, taxable income differs from—and is less than—gross income. above $1 million and tax unrealized capital gains at death above a $5 million exemption ($10 million for joint filers)
• Create a 25 percent “ billionaire minimum tax ” to tax unrealized capital gains of high-net-worth taxpayers
• Limit retirement account contributions for high-income taxpayers with large individual retirement account (IRA) balances
• Tax carried interest as ordinary income for those earning over $400,000
• Limit 1031 like-kind exchanges to $500,000 in gains
• Tighten estate and generation-skipping tax (GST) rules
• Tighten tax rules for digital assets, including cryptocurrency, and impose a new 30 percent excise tax An excise tax is a tax imposed on a specific good or activity. Excise taxes are commonly levied on cigarettes, alcoholic beverages, soda , gasoline , insurance premiums, amusement activities, and betting, and typically make up a relatively small and volatile portion of state and local and, to a lesser extent, federal tax collections. on electricity costs associated with digital asset mining

Major Tax Credit A tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer’s tax bill directly. Provisions in Biden Budget

• Extend the American Rescue Plan Act (ARPA) child tax credit (CTC) through 2025 and make the CTC fully refundable on a permanent basis (effective 2023)
• Permanently extend the ARPA earned income tax credit (EITC) expansion for workers without qualifying children (effective 2023)
• Permanently extend the ARPA premium tax credits expansion
• Make permanent the new markets housing tax credit and provide new tax credits for home buying and selling

Additional Major Provisions in Biden Budget

• Expand federal rules on drug pricing provisions
• Make permanent the exclusion of student loan forgiveness from income tax

Note : In a forthcoming update, we will estimate the economic, revenue, and distributional effects of the major tax proposals in the FY 2025 budget.

The tax changes Biden proposes fall under three main categories: additional taxes on high earners, higher taxes on U.S. businesses—including increasing taxes that Biden enacted with the Inflation Inflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets. The same paycheck covers less goods, services, and bills. It is sometimes referred to as a “ hidden tax ,” as it leaves taxpayers less well-off due to higher costs and “bracket creep,” while increasing the government’s spending power. Reduction Act ( IRA )—and more tax credits for a variety of taxpayers and activities. The combination of policies would move the tax code further away from simplicity, transparency, and neutrality.

President Biden reintroduced his proposal to raise the effective tax rates paid by households with net worth over $100 million. The proposal requires these households to pay a 25 percent minimum tax rate on an expanded definition of income that includes unrealized capital gains. This means these households would pay tax on capital gains even if the underlying asset has not yet been sold, operating as a prepayment for future capital gains tax A capital gains tax is levied on the profit made from selling an asset and is often in addition to corporate income taxes, frequently resulting in double taxation. These taxes create a bias against saving, leading to a lower level of national income by encouraging present consumption over investment. liability.

The billionaire minimum tax, as it is commonly known, would increase the complexity of the tax code by using a non-traditional and difficult-to-measure definition of income. It would require formulaic rules for valuing different types of assets, payment periods that vary by asset type, and a separate tax system to deal with illiquid assets. This tax design goes well beyond international norms , where capital gains are taxed when realized and at lower rates than the U.S. in many cases.

Aiming to address Medicare’s growing budgetary shortfalls , the president would raise the hospital insurance (HI) payroll tax A payroll tax is a tax paid on the wages and salaries of employees to finance social insurance programs like Social Security, Medicare, and unemployment insurance. Payroll taxes are social insurance taxes that comprise 24.8 percent of combined federal, state, and local government revenue, the second largest source of that combined tax revenue. for those earning over $400,000 from 0.9 percent to 2.1 percent. The net investment income tax (NIIT), a 3.8 percent tax on passive investment income for those earning over $200,000 (single) or $250,000 (joint), would be expanded to include active business income. This change would raise top tax rates on labor and business income while not doing enough to put entitlements on a path toward solvency.

President Biden also committed to preserving the additional funding appropriated to the Internal Revenue Service (IRS) as part of the Inflation Reduction Act. Biden argues this would help raise revenue from higher earners who evade taxes and would also improve taxpayer services. Much of this new revenue may take time to appear as the IRS trains new staff and spends time identifying evasion and enforcing the tax law. However, the other components of Biden’s tax plan will push the code in a more complex direction, making the job of the IRS to enforce the law more difficult.

President Biden proposed to raise the corporate income tax A corporate income tax (CIT) is levied by federal and state governments on business profits. Many companies are not subject to the CIT because they are taxed as pass-through businesses , with income reportable under the individual income tax . rate from 21 percent to 28 percent, a policy he has pushed for since the 2020 campaign. The corporate income tax is the most harmful tax for economic growth and its many problems have led countries around the world to reduce corporate tax rates considerably over the last 40 years to an average of about 23 percent as of 2023. The U.S. had the highest corporate tax rate in the OECD prior to the TCJA, which lowered the U.S. corporate tax rate to be roughly average among OECD countries. Recent studies have determined that lowering the corporate tax rate significantly boosted investment in the United States, a long-term process that continues to yield economic benefits, including gains in workers’ wages.

Raising the corporate tax rate from the current 21 percent to 28 percent, combined with the average state-level corporate tax rate, would give the U.S. the second-highest combined corporate tax rate in the OECD, significantly worsening the competitive position of U.S. businesses and reducing prospects for business investment and workers.

On top of a higher statutory corporate tax rate, Biden has proposed increasing the rate of the new corporate alternative minimum tax on book income from 15 percent to 21 percent. The tax was enacted in August 2022 as part of the IRA and scheduled to go into effect starting in 2023, but the IRS postponed its implementation because of the complexity of enforcing it . Taxpayers are still awaiting guidance on several significant questions related to the CAMT, and it remains questionable whether the tax is even feasible. It has certainly failed thus far as an effective minimum tax.

Biden also proposed quadrupling the IRA’s 1 percent excise tax on stock buybacks. Stock buybacks are one of the ways businesses return value to their shareholders. Companies can return earnings to shareholders by issuing dividends (namely cash payments) or with stock buybacks (purchasing shares of their own company). As much as 95 percent of the money returned to shareholders from stock buybacks subsequently gets reinvested in other public companies. Quadrupling the tax rate would likely discourage firms from pursuing stock buybacks, potentially tilting toward more dividend issuances instead, and could discourage investment.

As a new proposal, Biden would expand the cap on deductions for employee compensation above $1 million (Section 162m). The cap currently applies to the CEO, CFO, and the next three highest-paid employees of a corporation, and due to ARPA is already scheduled to expand to the next five additional highest-paid employees beginning after 2026.

Biden’s proposal would expand the cap to cover all employees, raising the cost of compensating employees and making it costlier for corporations to attract and retain top talent. It would mean both the corporate and individual top tax rates would apply to wages, resulting in top tax rates of 70 percent or more including state taxes. If the $1 million threshold is not indexed to inflation, over time the tax would hit more than just the C-suite.

Biden has called for several proposals to subsidize home purchases and boost the low-income housing tax credit, including a tax credit worth $5,000 per year for two years for middle-class, first-time homebuyers. The president would also offer a one-year tax credit worth up to $10,000 for middle-class households who sell a starter home to help improve starter home availability. Finally, the president proposes to provide up to $25,000 in down payment assistance for first-generation homebuyers.

Boosting demand through subsidies is likely to cause housing prices to increase further. What is needed is a greater supply of housing, which would be best accomplished at the state and local level by reforming zoning rules and at the federal level by reforming tax depreciation Depreciation is a measurement of the “useful life” of a business asset, such as machinery or a factory, to determine the multiyear period over which the cost of that asset can be deducted from taxable income . Instead of allowing businesses to deduct the cost of investments immediately (i.e., full expensing ), depreciation requires deductions to be taken over time, reducing their value and discouraging investment. rules for residential structures .

For developers, the president would expand the low-income housing tax credit (LIHTC) and create a new neighborhood homes tax credit to build or renovate affordable houses. This approach would be an inefficient way to build new homes as the existing LIHTC is expensive for the homes produced, with much of the credit value going to developers and financing agencies .

President Biden would renew the expanded child tax credit from the 2021 American Rescue Plan Act, which would raise the CTC value from $2,000 to a maximum value of $3,600 while removing work and income requirements. This CTC expansion would have major fiscal costs totaling over $1 trillion over 10 years above the current-policy CTC. If we include the underlying CTC expansion from the Tax Cuts and Jobs Act that expires at the end of 2025 , the cost approaches $2 trillion over 10 years.

In addition to the CTC expansion, the president would expand the EITC and make permanent the expanded Affordable Care Act (ACA) premium tax credits that are scheduled to expire at the end of 2025.

Finally, the president recommitted to not raising taxes on those earning under $400,000, arguing that he would fully pay for expiring TCJA individual tax changes with “ additional reforms ” that would further raise taxes on high earners and businesses. These unspecified reforms would need to total at least $1.4 trillion to cover TCJA extension for people earning under $400,000.

The president’s tax policy proposals as outlined in the State of the Union address would make the tax code more complicated, unstable, and anti-growth, while also expanding the amount of spending in the tax code for a variety of policy goals not related to revenue collection.

The White House estimates the FY 2025 Biden budget would reduce the budget deficit by $3.2 trillion over 10 years. However, this estimate does not include the cost of their intended extension of the TCJA tax cuts for those earning less than $400,000 or for the proposed expanded CTC post-2025. These tax changes alone would wipe out most of the touted deficit reduction.

The Biden budget also assumes an unrealistically high rate of growth in the economy, especially considering the large tax increases proposed on businesses and high earners that will slow growth. The budget assumes real GDP will grow at 2.2 percent annually in the last 5 years of the budget window, while the CBO assumes real GDP will grow about 1.9 percent annually over this period.

In sum, President Biden is proposing extraordinarily large tax hikes on businesses and the top 1 percent of earners that would put the U.S. in a distinctly uncompetitive international position and threaten the health of the U.S. economy. The Biden budget ignores or makes unrealistic assumptions about the fiscal cost of major proposals as well as economic growth under this plan, concealing what is likely to be a substantial cost borne by American workers and taxpayers.

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Biden calls for broad new social programs, higher taxes on corporations and the wealthy

The president’s 2025 budget is the strongest signal yet of his economic pitch to voters for a second term.

An earlier version of this article gave the wrong total for the budget proposal. It is $7.3 trillion, not $7.2 trillion. The article has been corrected.

President Biden laid out an election-year blueprint Monday for sweeping new federal spending to lower consumer costs for health care, child care and housing — and enough new taxes on the wealthy and major corporations to pay for those proposals and still shave $3 trillion off the national debt over the next decade.

Biden’s proposed $7.3 trillion budget for fiscal 2025 lays out the broad policy planks that many leading liberals have pushed him to embrace as he campaigns for another four years in the White House. With Republicans in control of the House, the proposals stand almost no chance of becoming law, but they set the stage for a likely rematch with former president Donald Trump this fall.

Biden would have Congress offer universal prekindergarten education, provide 12 weeks of paid family and medical leave, expand anti-poverty tax credits, and create a new tax break for first-time home buyers. The plan also reiterates U.S. support for Ukraine, with a $61 billion request to send arms and assistance to fight off Russia’s invasion.

The vast majority of the budget would cover mandatory programs, such as Medicare, Medicaid, Social Security and veterans’ benefits, which are not subject to annual spending legislation.

That spending would be more than offset by dramatically increasing taxes on the wealthiest individuals and corporations, the White House said. Biden’s budget would increase the minimum tax on billion-dollar corporations to 21 percent from 15 percent. It would raise taxes on U.S. multinationals’ foreign income to 21 percent from 10.5 percent, and eliminate some tax deductions for executive compensation.

It would also bolster funding for the Internal Revenue Service to train additional scrutiny on those same individuals and businesses. Biden’s budget would grant the agency an additional $104.3 billion — on top of an existing $60 billion expansion from the 2022 Inflation Reduction Act — over the next decade. Administration officials said that would generate $341 billion in net revenue, a nearly three-to-one return-on-investment ratio.

That proposal, in particular, might face long odds: Republicans have chafed at Biden’s expansion of the IRS, which he has used as the engine of much of his social programming and as a populist lever to discuss economic fairness and wealth concentration. GOP lawmakers already clawed back $20 billion of what was supposed to be $80 billion in funding for the tax service from the 2022 law in recent spending fights.

“I’m a capitalist,” Biden said in a speech Monday in Goffstown, N.H. “Make all the money you want. Just begin to pay your fair share of taxes.”

The administration has demonstrated its willingness to negotiate with Republicans over that extra money already, before even asking for the additional $104 billion.

The budget follows up the president’s State of the Union address, which fired up Democrats and ignited the Biden campaign’s largest fundraising hauls, in the strongest signal yet of Biden’s ambitions should he win another four years in the White House.

“Imagine what we could do,” Biden said Monday, “from cutting the deficit, to providing child care, to providing health care, to continuing to provide our military with all they need. Folks, look, this is not beyond our capacity.”

The budget is similar to the proposal Biden made last year and echoes pushes he made during negotiations on his defunct Build Back Better Act. But in some cases, Biden wasn’t able to win policies the budget calls for, even when Democrats controlled both chambers of Congress. Instead, the party scaled back some of its ambitions to pass the 2022 Inflation Reduction Act, one of the president’s chief legislative victories.

“President Biden’s 2025 budget lays out a sound approach to key decisions that need to be made next year, regardless of the outcomes of the elections,” Sharon Parrott, president of the left-leaning Center on Budget and Policy Priorities, said in a statement. “A fairer tax code that raises more revenues from wealthy people and profitable corporations to invest in people, communities, and the economy and to improve our fiscal outlook.”

Biden’s budget calls for expanding the IRA’s $35-per-month price cap for insulin paid for by Medicare to the commercial market, and allowing Medicare to negotiate more aggressively to bring down the cost of other drugs, though manufacturers have sued to block such price negotiations.

Biden would also restore expansions of the child tax credit, part of his 2021 American Rescue Plan Act. That measure sent monthly checks to working families to offset the cost of child care and kept 3 million children out of poverty, according to research conducted by Columbia University’s Center on Poverty and Social Policy. The provisions expired at the end of 2021, and Congress is considering a modest new expansion of the credit that would broaden eligibility for the lowest-income families with multiple children.

Biden instead would reinstate larger monthly payments to more participants, at a cost of $310 billion from 2025 through 2034.

Republicans in Washington have shot down some of Biden’s proposals.

House Speaker Mike Johnson (R-La.) said in a statement Monday that Biden’s budget was “yet another glaring reminder of this Administration’s insatiable appetite for reckless spending.”

The House GOP’s proposed budget would trim the deficit by $14 trillion over the next decade — more than three times as much as Biden’s would — and includes cuts to spending on mandatory programs such as Medicare and Medicaid.

“There has never been a clearer and starker contrast between Democrats’ big tax and spend policies and Republicans’ fiscal framework for economic growth and prosperity,” Rep. Jodey Arrington (R-Tex.), chair of the House Budget Committee, said in a statement Monday.

Congress has yet to finish passing spending laws to deal with the current fiscal year, which began Oct. 1, 2023, and runs until Sept. 30. Biden’s budget would cover the next year, starting Oct. 1.

Biden’s administration has been dogged by persistent inflation, though that has begun to cool in recent months. A report on price increases is due to be released Tuesday, with analysts and economists watching closely to see whether hotter-than-expected inflation in January was a one-time blip.

Conservatives argue that more government spending, and more social programs, will drive up inflation even more by injecting money into the economy.

Biden’s top economic advisers rejected that claim Wednesday, saying instead that investments in affordable child care and elder care would give more individuals an opportunity to join the workforce. That would drive up wages and give consumers more buying, relieving inflation.

“We’re very confident that if more caregivers could afford to pay for child care … that would increase labor force,” Jared Bernstein, chair of Biden’s Council of Economic Advisers, told reporters. “Higher labor force is very much a pro-growth development. It’s also helpful in dampening inflationary pressures.”

The White House also unveiled new or revamped tax policy changes to generate additional revenue.

Biden would mandate that wealthy taxpayers with individual retirement accounts, or IRAs, take annual distributions each year when the value of the account exceeds $10 million. Those distributions would be taxed like ordinary income. Biden’s budget would also prohibit taxpayers earning more than $400,000 — or $450,000 for married couples filing jointly — from rolling over funds from a traditional IRA into a Roth IRA, where it would not be taxable.

The White House also asked Congress to increase the taxes on capital gains and dividends for households earning more than $1 million each year to a 39.6 percent marginal rate. And the administration proposed increasing the corporate tax on stock buybacks — a key funding provision in the Inflation Reduction Act — from 1 percent to 4 percent.

As he did during his State of the Union, Biden on Monday reaffirmed his plan to strengthen social safety net and health-care programs, such as the Affordable Care Act. Liberal supporters, including Sen. Bernie Sanders (I-Vt.), have pushed the White House to draw sharper contrasts with Republicans on economic policy as the campaign heats up.

“Americans can no longer be denied health insurance because of preexisting conditions,” Biden said Monday. “My predecessor and many Republicans want to take that away.”

Biden never mentioned Trump by name on Monday, referring only to “my predecessor,” as he had done during the State of the Union, but he stressed that his opponents wanted to extend tax cuts for the wealthy by cutting social programs: “My Republican friends want to put Social Security and Medicare back on the chopping block again. If anyone wants to cut Social security and Medicare or raise the retirement age again, I will stop them.”

At the Transportation Department, the administration’s $109.3 billion budget request includes $21.8 billion for the Federal Aviation Administration — a portion of which will be used to hire 2,000 new air traffic controller to fill staffing shortages at a time of increased concern over close calls and near misses involving passenger aircraft on the ground and in the air.

The administration also outlined a plan to raise fuel taxes for private and business aircraft from roughly 22 cents per gallon to $1.06 per gallon, a proposal Transportation Secretary Pete Buttigieg said would raise more than $1.1 billion over five years to fund the national airspace system.

Biden in the budget also renewed his plan to fund Ukraine’s defense against Russia as well as Israel’s defense against Hamas , counter Chinese aggression in the Indo-Pacific, provide humanitarian assistance for civilians in Gaza, and upgrade security at the U.S.-Mexico border. His administration asked for $92 billion package for those priorities in the fall, but Johnson, the House speaker, has not seriously considered the proposal.

Lori Aratani and Cleve R. Wootson Jr. contributed to this report.

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Health care coverage: What is Biden's plan in his 2025 budget proposal?

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<iframe width="100%" height="124" scrolling="no" frameborder="no" src="https://player.wbur.org/hereandnow/2024/03/19/health-care-2025-budget"></iframe>

We break down President Biden's plan for health coverage — including his efforts to cement his legacy on drug costs, cancer research and broad health care coverage — in his 2025 budget proposal with STAT reporter Sarah Owermohle .

This segment aired on March 19, 2024.

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