US EditionUS judge blocks Defense Department from slashing federal research funding
UNITED STATES, JUN 21 – The ruling halts cuts that would reduce indirect funding from rates often above 50% to 15%, protecting essential research infrastructure and university financial stability.
- U.S. District Judge Brian Murphy temporarily blocked the Defense Department's 15% cap on reimbursing indirect research costs for universities in Boston in June 2025.
- The cap is part of a Trump administration effort to limit indirect cost reimbursements across multiple agencies including NIH, NSF, and the Department of Energy, prompting university lawsuits arguing regulatory violations.
- Other judges, including Angel Kelley and Allison Burroughs, blocked similar 15% caps and funding cuts by NIH and the Energy Department citing unlawful procedures and likely legal violations.
- Defense Secretary Pete Hegseth indicated that limiting indirect research cost reimbursements to 15% for new college grants could reduce expenditures by as much as $900 million each year, allowing those funds to be redirected toward innovation, operational capabilities, and strategic deterrence.
- These judicial decisions paused the caps' enforcement, with hearings scheduled and appeals pending, leaving the future of indirect cost reimbursement policies uncertain and under judicial review.
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209 Articles
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