NSF Follows NIH, DOE in Limiting Indirect Costs to 15%

May 02, 2025

Update: APLU, AAU and ACE filed a joint lawsuit seeking to halt the 15% cap

APLU, the Association of American Universities, and the American Council on Education filed a joint lawsuit in the United States District Court for the District of Massachusetts along with 13 research universities that are negatively affected by the indirect cost cap.  The Court’s decision is anticipated soon.


NSF Follows NIH, DOE in Limiting Indirect Costs to 15%

On Friday, May 2, the National Science Foundation (NSF) updated its policy regarding the reimbursement of indirect costs for federally funded grants and cooperative agreements, which will limit the indirect cost recovery for new NSF awards to 15%. We anticipate a court response and temporary restraining order as we have seen for NIH and DOE. We continue to track that process and will keep you informed.

In additional news, Nature reports NSF has stopped awarding new grants or funding existing ones. This is based on an internal NSF memo, not an official notification to research universities. We have yet to learn specific impacts to LSU.