US Appeals Court Ruling on University Research Indirect Cost Cuts: A Win for Labs

A potential financial disaster for American research universities has been averted. A federal appeals court has officially blocked the administration's attempt to slash funding for institutional overhead, ensuring that critical scientific infrastructure remains funded. The decision marks a significant moment in the ongoing tension between executive cost-cutting and the realities of high-stakes scientific R&D.

The Fight Over the University Research Indirect Cost Funding Ruling

The controversy centered on what are known as indirect costs—funds awarded alongside grants to cover utilities, facility maintenance, and administrative support. While these rates were previously negotiated based on actual expenses, the Trump administrationwanted to impose a flat 15% cap on all institutions. For many universities in high-cost urban areas, where rates often exceed 50%, this move would have been crippling.

Congressional Roadblocks and Legal Precedents

The appeals court's rejection of the policy wasn't based on the merits of the funding itself, but on legislative authority. As reported by Reuters, the court noted that Congress had already passed a rule specifically to prevent this type of executive intervention during the first Trump term. Therefore, the administration couldn't legally bypass the will of the legislature to enforce the cap.

• A broad array of universities and medical schools joined the lawsuit to block the change.
• The permanent injunction remains in place unless the Supreme Court decides to intervene.