U.S. District Judge Indira Talwani released a ruling on Friday, June 20, blocking the National Science Foundation’s order to cap indirect costs for new and existing federal grants at 15%.
The ruling follows a lawsuit filed by 13 universities, including the University of Michigan, along with the Association of American Universities, Association of Public and Land-grant Universities and the American Council on Education.
The new rate, announced in May, would have replaced previously negotiated rates with universities and research institutions, including U-M’s current negotiated rate of 56%. U-M is ranked fourth in the nation in NSF funding and received $127 million in the last fiscal year.
The ruling protects the university’s ability to support the cutting-edge and life-saving research performed by U-M researchers every day.
Unlike temporary restraining orders issued in similar cases involving federal funding agencies, Talwani’s order is permanent. The administration can appeal the judge’s decision.