On Wednesday October 15, Judge Brian E. Murphy of the United States District Court for the District of Massachusetts issued a final judgment in AAU’s joint lawsuit, vacating the Department of Defense policy capping indirect cost rates at 15%.
Judge Murphy issued a declaratory judgment vacating the May 14, 2025, Hegseth memo and the June 12, 2025, Michael memo and finding the policy “invalid, arbitrary and capricious, and contrary to law.” The government has 60 days to file an appeal with the 1st Circuit Court of Appeals.
More information about the case, including links to our statement and the legal filings, can be found here.