This page will be updated regularly to provide new information as it becomes available regarding the AAU-ACE-APLU legal action contesting the National Science Foundation (NSF) cutting reimbursement rates to 15%. Stay tuned.
September 30, 2025: On September 30, 2025, the 1st U.S. Circuit Court of Appeals issued an order granting the Trump Administration's unopposed motion to voluntarily dismiss its appeal. As a result of this dismissal, the United States District Court for the District of Massachusetts decision vacating and declaring invalid the NSF's 15% indirect cost rate policy stands and is now permanent with no option for further appeal.
September 26, 2025: On September 26, 2025, the Trump Administration filed a motion to dismiss its appeal in the 1st U.S. Circuit Court of Appeals in the AAU, ACE, APLU case challenging the National Science Foundation’s policy to cap facilities and administrative costs at 15%.
August 14, 2025: The Trump administration filed an appeal in the 1st U.S. Circuit Court of Appeals of the final judgment issued by Judge Indira Talwani on June 20, 2025, that vacated and declared invalid the NSF’s 15% indirect cost rate policy.
June 20, 2025: On June 20, 2025, Judge Indira Talwani of the United States District Court for the District of Massachusetts granted summary judgment in favor of AAU, APLU, ACE and 13 research universities. Judge Talwani “vacated and declared invalid, arbitrary and capricious, and contrary to law” the NSF’s 15% indirect cost rate and the agency’s policy notice implementing it. The court ordered that the NSF provide notice of the decision to all grant recipients within 72 hours.
May 16, 2025: On May 16, 2025 in order to avoid the need for a hearing on a motion for preliminary injunction and in conjunction with an agreement made between the parties, the NSF agreed to pause until June 13, 2025 the implementation of the its policy cutting of F&A reimbursement rates for NSF grants and cooperative agreements. The NSF has made further information about this decision and its impact on current priorities available here under the “Indirect cost rate policy “ section.
May 5, 2025: On May 5, 2025, AAU, APLU, ACE and 13 research universities filed a lawsuit contesting the cutting of F&A reimbursement rates for NSF grants and cooperative agreements that was announced on May 2, 2025, and effective on May 5, 2025. Additional updates will be provided as they become available.