"Judge Allison D. Burroughs emphasized the urgency of the plaintiffs' situation, stating that they would face "immediate and irreparable injury" without a temporary restraining order."
"The Department of Energy's plan to cap indirect research cost reimbursements at 15% could severely impact university research budgets, as current rates average around 30%."
"Higher education associations argue that limiting reimbursement rates threatens the financial stability of research initiatives, as indirect costs often fund essential support services and infrastructure."
"The DOE typically allocates over $2.5 billion annually to 300+ institutions to cover critical indirect costs linked to research projects, including administrative and operational needs."
A federal judge has blocked the Department of Energy's (DOE) proposal to cap indirect cost reimbursements for universities at 15%, pending hearings. This decision comes following a lawsuit from major higher education associations and prestigious universities, who claim that the cap would inflict immediate and irreparable harm. The current average reimbursement rate is approximately 30%. Higher education leaders assert that these funds are vital for covering indirect expenses related to research projects. The halted plan closely mirrors a previous initiative by the National Institutes of Health that was also blocked by the courts.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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