New NIH Salary Cap Effective 1/1/2010

In the January 8, 2010 issue of the NIH Guide for Grants and Contracts, NIH has announced the new salary cap:
Continued Salary Limitation (Section 203)
"None of the funds appropriated in this Act for the National Institutes of Health, the Agency for Healthcare Research and Quality, and the Substance Abuse and Mental Health Services Administration shall be used to pay the salary of an individual, through a grant or other extramural mechanism, at a rate in excess of Executive Level I." Executive Level I of the Federal Executive Pay Scale effective January 1 through December 31, 2009 was $196,700. Effective January 1, 2010, this amount increased to $199,700. Applications and proposals with categorical direct cost budgets reflecting direct salaries for individuals in excess of Executive Level I per year will be adjusted in accordance with the legislative salary limitation. Further information on the NIH Salary Limitation can be found in NIH Guide Notice NOT-OD-10-041 published on January 6, 2010.
http://grants.nih.gov/grants/guide/notice-files/NOT-OD-10-040.html