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US judge blocks Defense Department from slashing federal research funding

  • On June 16, several universities filed a lawsuit against the U.S. Defense Department to prevent enforcement of its new rule limiting indirect research cost payments to 15%.
  • This lawsuit followed similar proposals by NIH, NSF, and the Energy Department imposing 15% caps that triggered legal challenges and court blocks.
  • On June 17, U.S. District Judge Brian Murphy issued a temporary restraining order preventing the Defense Department from enforcing its policy that limits reimbursements to 15%.
  • Defense Secretary Pete Hegseth said the policy would save up to $900 million annually, while plaintiffs argued the cap would cause immediate and irreparable harm to university research funding.
  • The ongoing litigation and pending hearings, including one scheduled for July 2, highlight sustained judicial scrutiny that could determine the future of federal indirect cost reimbursement policies.
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Reuters broke the news in United Kingdom on Monday, June 16, 2025.
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