A federal judge on Friday vacated the National Science Foundation’s (NSF) new policy that capped indirect cost rates on research grants awarded to universities.
The decision followed a lawsuit filed last month 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.
The NSF said the rate cap policy was intended “to streamline funding practices, increase transparency, and ensure that more resources are directed toward direct scientific and engineering research activities.”
Talwani stated that the plaintiffs have shown the rate cap policy would cause harm, including disruptions to ongoing research projects and potential layoffs of specialized researchers and staff.
“Although the 15% indirect cost rate does not affect existing or continuing grant awards, plaintiffs and member institutions collectively have thousands of proposals pending before NSF, which they submitted in reliance on their negotiated indirect cost rates,” the judge stated.
“And plaintiffs’ declarations establish that many proposed research projects and future projects cannot proceed as budgeted with indirect costs funded at a 15% rate.”
The Epoch Times has sought comment from both the NSF and the Association of American Universities but did not receive a response by publication time.
The NSF has argued that the policy is authorized under the National Science Foundation Act, which grants the agency discretion to spend federal funds in ways that “‘best realize’ its mission of promoting scientific research.”
The new requirements expand the terms and conditions tied to federal anti-discrimination laws for institutions receiving NSF funding.