Update on Department of Energy indirect cost rate cap

A federal judge on May 15 issued a nationwide preliminary injunction that halts the implementation of a 15% indirect cost rate on Department of Energy grants and contracts. The injunction replaces the temporary restraining order on the cuts placed last month and will likely remain in place until the judge hears full arguments in the lawsuit brought forward by the Association of American Universities, American Council on Education, Association of Public and Land-Grant Universities and several universities.

UW–Madison is a member of AAU, ACE and APLU, and Vice Chancellor for Research Dorota Grejner-Brzezinska submitted a declaration in the lawsuit.

In her ruling, Judge Allison D. Burroughs of the U.S. District Court for the District of Massachusetts found that the plaintiffs are likely to succeed on the merits of at least 3 of four claims under the Administrative Procedure Act and that universities are likely to suffer irreparable harm absent a preliminary injunction.

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 researchers receive any direct communications from federal agencies or have questions regarding these matters, they should contact rspinfo@rsp.wisc.edu.