A coalition comprising major research universities and advocacy groups has filed a federal lawsuit against the Department of Energy (DOE) to challenge a new policy that caps reimbursement rates for indirect research costs at 15 percent. The plaintiffs, including several prestigious universities and organizations, argue that this cap would significantly harm scientific research and innovation in the U.S. The DOE allocates over $2.5 billion annually for research, and currently, universities receive an average indirect cost rate of 30 percent. The DOE defends its policy as a move to reduce wasteful spending, but critics highlight the essential role of indirect costs for facilitating important research activities.
The lawsuit argues that the DOE's policy, if allowed to stand, will devastate scientific research at America's universities and undermine our Nation's status as a global leader.
Capping the indirect cost reimbursement rates at 15 percent would save $405 million and ensure efficient use of taxpayer funding for research and innovation.
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