In order to more closely align budgets proposed in renewal applications with actual funding levels, the NCI (National Cancer Institute) is revising the direct cost “cap” policy. The policy previously allowed 20% cost increases over the previous Fiscal Year, will now only allow 10% increases The change affects all Type 2 R01, U01, and P01 renewal applications regardless of the amount of budget request or budget format (i.e., modular or non-modular) and is effective for renewal applications that have receipt/submission dates on and after October 1, 2008. See the full notice at NOT-CA-08-026.