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Major Universities Sue NSF Over Research Funding Cuts

Thirteen universities and academic groups filed a federal lawsuit in Boston to block the NSF's newly announced 15% cap on indirect cost reimbursements.

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The sign at Building 76 at the Massachusetts Institute of Technology (MIT) in Cambridge, Massachusetts, U.S., November 21, 2018. Picture taken November 21, 2018. REUTERS/Brian Snyder/File Photo
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Overview

  • The lawsuit, filed on May 5, 2025, challenges the National Science Foundation's plan to limit indirect cost reimbursements for research grants to 15%.
  • Plaintiffs include MIT, Princeton, Brown, and other leading universities, along with academic organizations such as the Association of American Universities.
  • The NSF policy follows similar attempts by the NIH and DOE, which were blocked by federal courts after being deemed unlawful.
  • Universities argue the cap threatens vital research infrastructure, undermines U.S. scientific leadership, and violates federal statutes governing indirect cost rates.
  • In fiscal year 2024, NSF funded $7.2 billion in research, with institutions like MIT and Brown relying heavily on these grants to support hundreds of projects.