March 6 – Update on NIH indirect cost rates

A federal judge on March 5 issued a nationwide preliminary injunction that halts the implementation of a 15% indirect cost rate on NIH grants and contracts. The injunction, which replaces the temporary restraining order on the cuts placed last month, will likely remain in place until the judge hears full arguments in three lawsuits brought forward by 22 state attorneys general, associations, and organizations representing institutions of higher education.

In her ruling, Judge Angel Kelley of the U.S. District Court for the District of Massachusetts wrote, “Considering the irreparable harm likely to befall similarly situated nonparties, the chaos that would result both for institutions and NIH from a patchwork of injunctions, the diffuse nature of the Plaintiffs, and the nature of the suit, a nationwide preliminary injunction is the appropriate and reasonable remedy.”

The Office of Federal Relations is continuing to monitor these and other developments and the potential impact on UW–Madison operations. At this time, UW–Madison continues to submit research proposals according to our federal negotiated indirect cost rate agreement. If you receive any direct communications from federal agencies or have questions regarding these matters, please send them to rspinfo@rsp.wisc.edu.