Overview

• Thirteen major research universities, including MIT and the University of Chicago, filed lawsuits on May 5 to block the National Science Foundation's new 15% cap on indirect research cost reimbursements.
• The lawsuits, joined by three higher-education associations, contend the policy violates federal statutes and mirrors similar NIH and DOE caps that courts previously blocked.
• Plaintiffs argue the cap will undermine essential research infrastructure, including lab maintenance, utilities, and administrative support, and result in significant financial losses for institutions.
• The NSF implemented the cap for new grants starting May 5, pausing all funding actions and canceling hundreds of grants, while the agency faces staff reductions and leadership changes.
• Critics warn the policy jeopardizes U.S. global competitiveness in scientific innovation by reducing support for key research activities and infrastructure.