Modular budget
Definition
A modular budget is a simplified NIH budget format in which applicants request direct costs in $25,000 modules instead of itemizing every expense. It applies to many NIH research grant applications requesting $250,000 or less in direct costs per year.
How it works
A modular budget works by asking for direct costs in round $25,000 blocks for each year, with a short justification instead of a line-item breakdown. Key rules, as of October 2026:
- Threshold. Use the modular format when requesting up to $250,000 in direct costs per year, if the activity code allows it (including R01, R03, R15, R21, and R34 applications).
- Modules. Each year's request is a multiple of $25,000, such as $175,000 or $250,000.
- Consortium F&A. A subaward partner's indirect costs are excluded from the $250,000 calculation.
- Justification. The application includes a personnel justification (names, roles, and effort in person months), a consortium justification if there are subawards, and an additional narrative justification only if the number of modules changes significantly between years.
- Not eligible. Applications from foreign institutions and SBIR and STTR applications use the detailed (R&R) budget instead.
Requests above $250,000 in direct costs in any year use the detailed budget format.
Why it matters for research offices
The modular format matters because it saves time at submission without changing what the institution must track internally. Most sponsored programs offices still have the PI build a detailed internal budget to arrive at the module count, since the institution has to manage real costs after award. The indirect costs are calculated on the actual direct costs in the internal budget, not just the modules.
Example
A PI estimates direct costs of $231,000 per year for a three-year project. The modular request rounds up to the next module, $250,000 per year (10 modules), and the budget justification describes personnel and effort only.
Common mistakes
- Using a modular budget when one year exceeds $250,000 in direct costs.
- Including subrecipient indirect costs in the $250,000 total.
- Skipping the internal detailed budget, then discovering after award that the funded modules do not cover actual costs.
- Requesting big swings in modules between years without the extra justification.
Frequently asked questions
NIH modular budgets are used for applications requesting up to $250,000 in direct costs per year, in $25,000 modules. Requests above that use the detailed budget format.
No. Consortium (subaward) indirect costs are excluded when determining whether an application falls under the $250,000 per year modular threshold.