A group of universities and education organizations, including Brown University and MIT, have filed a lawsuit to halt the Department of Energy’s plan to reduce federal research grant funding for indirect costs to 15%. The plaintiffs argue that this cut will harm scientific research, innovation, and the nation’s global leadership status. They claim that the policy change violates the Administrative Procedure Act and will slow progress on important scientific projects. The Energy Department provides over $3.5 billion annually to support research at more than 300 colleges and universities, with some funds allocated to indirect costs like facilities and administration. The plaintiffs argue that the indirect costs are essential for scientific work and that the Trump administration’s policy violates regulations and should not be a one-size-fits-all approach. The DOE claims the new policy will save over $405 million annually. Universities like Brown, Caltech, Cornell, and MIT stand to lose millions in research funding under the new policy. The complaint argues that the cuts will result in reduced staffing, hinder training programs, and impact the next generation of scientists. The plaintiffs are seeking to invalidate the Rate Cap Policy and obtain an injunction against it. The American Council on Education warns that the cuts will harm critical research in energy and engineering, weaken America’s economic opportunities, and benefit competitors like China. University presidents emphasize the importance of protecting research funding for scientific innovation and national progress.
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