Status: Blocked

What happened? On Feb. 7, NIH announced it would cap reimbursement for indirect research costs to 15% for current and new grants. Although NIH said the move would save the agency $4 billion each year, it quickly drew several lawsuits from state attorneys general, higher education associations and research universities that argued the policy would undercut medical research and make the nation less competitive. 

Two months later, U.S. District Judge Angel Kelley permanently blocked the 15% cap, ruling that NIH didn’t follow proper regulatory procedures when creating it and impermissibly applied it retroactively. The ruling was the first to block one of the Trump administration’s indirect cost caps. 

What’s next? The policy's fate remains in flux, as the Trump administration appealed Kelley’s ruling.

Status: Temporarily blocked

What happened? On April 11, the Energy Department said it would limit reimbursement of indirect research costs for colleges to 15% for new grants and terminate existing grants that don’t conform with the policy. 

“The purpose of Department of Energy funding to colleges and universities is to support scientific research — not foot the bill for administrative costs and facility upgrades,” U.S. Energy Secretary Chris Wright said in the announcement. 

A group of higher education groups and research universities sued over the new policy soon thereafter and asked a federal judge to strike it down, arguing it would “devastate scientific research.” 

On May 15, U.S. District Judge Allison Burroughs granted a preliminary injunction blocking the Energy Department from implementing the 15% cap. Burroughs ruled the plaintiffs were likely to succeed in proving the limit violates federal law. 

What’s next? The preliminary injunction is temporary, as Burroughs has yet to issue a final ruling on the case. The Trump administration has until July 1 to file a response to the lawsuit. 

Status: Delayed

What happened? On May 2, NSF said it would limit reimbursement for research overhead to 15% for all new grants awarded to colleges, becoming the third federal agency under the Trump administration to implement a cap on indirect research costs. 

The move drew a lawsuit only a few days later from a group of research universities and higher education organizations, who argued the move oversteps the agency’s authority and threatens scientific research. The plaintiffs — which include Arizona State University and the University of Illinois — said they stand to lose tens of millions of dollars, as they often have negotiated reimbursement rates for indirect costs above 50%. 

What’s next? A federal judge is expected to issue a ruling after hearing arguments from both sides on June 13. NSF officials voluntarily agreed to delay the policy's effective date until then, according to June 18 court documents.

Status: Temporarily blocked

What happened? On May 14, U.S. Defense Secretary Pete Hegseth issued a memo declaring that the Defense Department would move to cap reimbursement for indirect research costs to 15% for all new grants for colleges. Hegseth also ordered officials to renegotiate rates on existing awards. If colleges do not agree, DOD officials should terminate previously awarded grants and reissue them under the “revised terms,” he said. 

Overall, Hegseth estimated the move would save the agency $900 million annually. 

A group of higher education associations and research universities sued on June 16, arguing that the Defense Department overstepped its authority and noting that other courts had blocked the Trump administration’s caps at other agencies. 

“As with those policies, if DOD’s policy is allowed to stand, it will stop critical research in its tracks, lead to layoffs and cutbacks at universities across the country, badly undermine scientific research at United States universities, and erode our nation’s enviable status as a global leader in scientific research and innovation,” they wrote in court documents. 

The next day, U.S. District Judge Brian Murphy granted a temporary restraining order blocking the Defense Department from implementing its policy until further ordered. 

What’s next? Murphy has scheduled a July 2 hearing on the temporary restraining order.