Judge Sides With Universities Over National Science Foundation’s Research Cost Cap

The federal agency implemented a policy capping indirect cost rates at 15 percent for new grants awarded to universities.
Judge Sides With Universities Over National Science Foundation’s Research Cost Cap
The National Science Foundation logo and U.S. flag in this illustration taken on April 23, 2025. Dado Ruvic/Reuters
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A federal judge on June 20 vacated a new policy of the National Science Foundation (NSF) that capped indirect cost rates on research grants awarded to universities.

The decision followed a lawsuit filed in May by the Association of American Universities and several institutions, challenging the NSF’s move to cap indirect cost rates at 15 percent for new grants and cooperative agreements awarded to universities.