Overview

• A group of leading universities, including MIT, Brown, and Princeton, filed a lawsuit in Massachusetts federal court to block the DOE's new 15% cap on indirect cost reimbursements for research grants.
• The DOE's policy, announced last week, represents a significant reduction from previously negotiated rates, which often exceed 30%, and is projected to save $405 million annually.
• Universities warn the cuts will force layoffs, facility closures, and jeopardize research in areas like nuclear technology, cybersecurity, and cancer treatments.
• The lawsuit alleges the policy violates the Administrative Procedure Act and undermines long-standing funding agreements essential to maintaining research infrastructure.
• This legal challenge follows similar disputes over NIH funding cuts earlier this year, where a federal court issued an injunction against the policy.