IDC (F&A) Rates Update The new federally negotiated rate for research beginning July 1, 2012 (and so to be used in current proposals) is 44%. The rate for teaching grants has gone up as well, to 57%. Note that if a funder requires use of an F&A rate different from MSU’s relevant federally negotiated rate, F&A MUST be charged against ALL direct costs, including the full amounts of subawards, fellowships, tuition, and participant costs.