Overview
- A unanimous First Circuit panel affirmed a permanent injunction that bars NIH from imposing a 15% cap on indirect-cost reimbursements.
- The court found the policy unlawful under a long-standing appropriations rider and agency regulations that require institution-specific negotiations.
- Judges also agreed the Massachusetts district court had subject-matter jurisdiction, enabling nationwide relief beyond the plaintiff states.
- NIH had projected roughly $4 billion in savings for direct research costs, while opponents warned of layoffs, lab closures, and stalled clinical trials.
- NIH declined to say whether it will appeal, leaving negotiated indirect-cost agreements in place while the policy remains halted.