NIH 15% Cap on Indirect Cost Reimbursement - Information & Resources

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Statements and Article Quotes from COGR and Other Higher Education Associations on NIH's 15% Cap on Facilities and Administrative Costs Reimbursement

COGR's F&A Cost Reimbursement Materials & Resources

National Organizations Announce Joint Effort to Develop a New Indirect Costs Funding Model

Agency Notices & Communications

Litigation 

  • Commonwealth of Massachusetts v. National Institutes of Health
    • Docket No. 1:25-cv-10338
    • District Ct., D. Massachusetts
    • Filed Feb. 10, 2025
    • See Feb. 10, 2025, Complaint alleging that 15% rate cap violates APA and seeking TRO.
    • See Feb. 10, 2025, Order granting TRO applicable to plaintiff states.
    • Court combined this suit with AAU and AAMC suits listed below for argument. Hearing was held Feb. 21, 2025, and court extended TRO until it makes decision re. grant of a preliminary injunction.
    • See Mar. 5, 2025, Memorandum and Order granting a preliminary injunction that enjoins the defendants from “taking any steps to implement, apply, or enforce the Supplemental Guidance to the 2024 NIH Grants Policy Statement:  Indirect costs Rates (NOT-OD-25-068) in any form with respect to institutions nationwide.
    • See Apr. 4, 2025, Motion filed by Defendants with the Assent of Plaintiffs to convert the Order on Motion for a Preliminary Injunction into a permanent injunction and enter final judgment with the government retaining the right to appeal from the final order and judgment.  Motion contends that no outstanding legal or factual issues remain for disposition and entering a final judgment will facilitate review on appeals.  This motion is accompanied by another motion filed by the Defendants and assented to by Plaintiffs asking court to delay all pending deadlines in the lawsuit pending a ruling on the motion to convert the preliminary injunction to a permanent injunction. 
    • See Apr. 4, 2025, Final Judgment and Permanent Injunction which government may still appeal.
    • See April 8, 2025, Notice of Appeal to the First Circuit Court of Appeals.

  • Case on Appeal

    Commonwealth of Massachusetts v. NIH

    Docket No. 25-1343

    Filed April 9, 2025

  • Association of American Universities v. Department of Health & Human Services​​
    • Docket Number 1:25-cv-10346
    • District Ct., D. Massachusetts
    • Filed Feb. 10, 2024
    • See Feb. 10, 2025, Complaint alleging that 15% cap violates APA. [NOTE: Court did not grant TRO in this case because one was in place in AAMC case listed below.  Court combined AAU, AAMC and Commonwealth of Mass. cases for argument on Feb. 21, 2025].
    • Hearing was held Feb. 21, 2025, and court extended TRO until it makes decision re. grant of a preliminary injunction.
    • See Mar. 5, 2025, Memorandum and Order granting a preliminary injunction that enjoins the defendants from “taking any steps to implement, apply, or enforce the Supplemental Guidance to the 2024 NIH Grants Policy Statement:  Indirect costs Rates (NOT-OD-25-068) in any form with respect to institutions nationwide. 
    • See Apr. 4, 2025, Motion filed by Defendants with the Assent of Plaintiffs to convert the Order on Motion for a Preliminary Injunction into a permanent injunction and enter final judgment with the government retaining the right to appeal from the final order and judgment.  Motion contends that no outstanding legal or factual issues remain for disposition and entering a final judgment will facilitate review on appeals.  This motion is accompanied by another motion filed by the Defendants and assented to by Plaintiffs asking court to delay all pending deadlines in the lawsuit pending a ruling on the motion to convert the preliminary injunction to a permanent injunction.
    • See Apr. 4, 2025 Final Judgment and Permanent Injunction, which government may still appeal.

    • See Apr. 4, 2025 Final Judgment and Permanent Injunction, which government may still appeal.
      See April 8, 2025 Notice of Appeal.

Case on Appeal

 

Association of American Medical Colleges v. National Institutes of Health

  • Docket No. 1:25-cv-10340
  • District Ct., D. Massachusetts
  • Filed Feb. 10, 2025
  • See Feb. 10, 2025, Complaint alleging 15% cap violates APA, exceeds NIH statutory authority, violates due process and statutory and constitutional prohibitions on retroactivity.
  • See Feb. 10, 2025, Order granting nationwide TRO.
  • Court combined this suit with Commonwealth of Mass. and AAU suits listed above for argument. Hearing was held Feb. 21, 2025, and court extended TRO until it makes decision re. grant of a preliminary injunction.
  • See Mar. 5, 2025, Memorandum and Order granting a preliminary injunction that enjoins the defendants from “taking any steps to implement, apply, or enforce the Supplemental Guidance to the 2024 NIH Grants Policy Statement:  Indirect costs Rates (NOT-OD-25-068) in any form with respect to institutions nationwide.
  • See Apr. 4, 2025, Motion filed by Defendants with the Assent of Plaintiffs to convert the Order on Motion for a Preliminary Injunction into a permanent injunction and enter final judgment with the government retaining the right to appeal from the final order and judgment.  Motion contends that no outstanding legal or factual issues remain for disposition and entering a final judgment will facilitate review on appeals.  This motion is accompanied by another motion filed by the Defendants and assented to by Plaintiffs asking court to delay all pending deadlines in the lawsuit pending a ruling on the motion to convert the preliminary injunction to a permanent injunction.
  • See Apr. 4, 2025 Final Judgment and Permanent Injunction, which government may still appeal.
  • See Apr. 8, 2025 Notice of Appeal.

Case on Appeal

  • Docket No. 25-1344
  • Briefing is scheduled to be completed by July 1 with oral argument thereafter if necessary.

Litigation re. Termination of Federal Grants

Colorado v. U.S. Dept. of Health and Human Services

  • Docket No.  1:25-cv-00121
  • District Court for District of Rhode Island
  • Filed Apr. 1, 2025
  • See Apr. 1, 2025, Complaint filed by the attorney generals of Colorado and other states (CA, MN, WA, AZ, CN, DE, DC, HI, IL, KY, MD, MA, MI, NV, NJ, NM, NY, NC, OR, PA, WI) injunctive relief and other relief re. public health grants and cooperative agreements that were terminated for cause because they were appropriated through COVID-19 related laws and the government contends that their purpose has run out because the pandemic is over.  The plaintiffs contend that Congress never limited the funding to the period of the COVID-19 emergency and that the terminations violate the APA.  The plaintiffs see to set aside the terminations and enjoin the government from implementing or enforcing the terminations for the same or similar reasons and without required statutory/regulatory process.
  • See Apr. 3, 2025, Minute Order granting Temporary Restraining Order restraining government from implement or enforcing funding termination issues on or after March 24, 2025 for reasons related to the end of the COVID-19 pandemic and from issuing new funding terminations for the same/similar reasons (“Public Health Terminations”).  April 5, 2025, Temporary Restraining Order states that the government must “immediately cease withholding any funds based on the Public Health Terminations and shall make such funds available and process all payments as if the Public Health Terminations had not been issued.”  The TRO applies only to the plaintiff states.  See April 7, 2025, Motion for Reconsideration of TRO based on Supreme Court’s Ruling in California v. Dept. of Education.
  • See April 7, 2025, Motion for Reconsideration of TRO based on Supreme Court’s Ruling in California v. Dept. of Education. After a hearing on April 17, 2025, the court extended the TRO until an order is issued on the preliminary injunction. 
  • See April 8, 2025, plaintiff’s motion for a preliminary injunction.  Court held a hearing on this motion on April 17 and extended TRO until it issues a ruling on the motion for preliminary injunction.  The court also requested additional briefing.
  • See May 16, 2025, Order granting a preliminary injunction that prohibits government from implementing or enforcing March 5, 2025, decision cancelling federal financial assistance awarded under COVID-19 programs and requiring government to restore funding.  The injunction is limited to the plaintiff states. 

American Public Health Association v. NIH

  • Docket No. 1:25-cv-10787
  • District Court, D. Mass.
  • Filed  April 2, 2025
  • See Apr., 2, 2025, Complaint filed by individual researchers and organizations whose members are researchers who have (or are in the process of securing) NIH funding that was terminated by NIH or for which NIH discontinued soliciting proposals based on government’s claims that they are unscientific or no longer effectuate agency priorities.  Plaintiffs contend that the government’s terminations and failure to consider proposals violate the APA and separation of powers and that Executive Orders re. DEI on which terminations are based are unconstitutionally vague.  Plaintiffs seek injunctive relief, restoration of terminated awards, continued review of properly submitted proposals. Plaintiffs also ask that the government be enjoined from taking negative action against the plaintiffs for filing the lawsuit. 
  • See April 28, 2025 Amicus Curiae appearance of counsel entered on behalf of AAMC, ACE, AASCU, AAU, COGR, etc.

  • A hearing on the motion for a preliminary injunction has been set for May 22, 2025.

Massachusetts v. Robert F. Kennedy, Jr.

  • Docket No. 1:25-cv-10814
  • District Ct., D. Mass.
  • Filed Apr. 4, 2025
  • See Apr. 4, 2025, Complaint filed by attorney generals of Mass. and other states (CA, MD, WA, AZ, CO, DE, HI, MN, NV, NJ, NM, NY, OR, RI and WI) seeking relief for unreasonable and intentional delays in NIH grant-application process and terminations of large numbers of issued grants on the basis that they no longer effectuate agency priorities.  Plaintiffs contend that government’s actions violate the APA and the separation of powers and spending clauses of the Constitution, and they seek an injunction to require NIH to promptly review proposed grants and renewals and to set aside unlawful terminations and prevent further terminations on the ground that the grants no longer effectuate agency priorities.
  • See Apr. 17, 2025, motion by AAMC, American Assoc. of State Colleges and Universities, ACE, AAU, Assoc. of Governing Boards of Universities and colleges, APLU, and COGR for leave to file amici curiae brief.  The court granted this motion on April 18, 2025, and the brief was filed on this date.
  • See May 1, 2025 recusal of Judge Brian Murphy from case and reassignment of case to Judge Wm. Young. 
  • Court held a hearing on May 8, 2025 on the preliminary injunction and the court took the matter under advisement.  The court heard arguments on subject matter jurisdiction and if it determines it has jurisdiction, it will hold a case management conference on May 13. 
  • See May 12, 2025 Order in which court held that it has subject matter jurisdiction, and setting case management conference for May 13. Next hearing is set for June 16. 

 

 

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