Message From VP Twilley

Update: Temporary Restraining Order prohibiting DOD from implementing 15% Rate Cap Policy

A federal judge issued a temporary restraining order prohibiting the Department of Defense from “implementing, instituting, maintaining, or giving effect to the immediately effective portions of the Rate Cap Policy, i.e., those portions implementing a 15% cap for all awards issued on or after June 12, 2025, including but not limited to rejecting or treating adversely proposals for DOD funding submitted at universities’ negotiated rates rather than the 15% rate."

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Message from VP Twilley

We continue to experience uncertainty related to indirect costs (IDC) recovery. On June 12, the U.S. Department of Defense (DoD) issued a memorandum limiting IDC reimbursements to 15% on future and existing DoD grants. A lawsuit has been filed similar to the lawsuits filed for the other federal agencies. Due to the pending legal action, LSU will continue to use our previously agreed upon rate for DoD proposals. Please contact the Office of Sponsored Programs at osp@lsu.edu if you are contacted to renegotiate IDC.

In addition, the executive branch has proposed deep cuts to research funding in 2026—56% to NSF, 43% to NIH, 24% to NASA, and 54% to EPA. These numbers are deeply concerning, but not final. The House and Senate are currently developing the 2026 budget and we remain optimistic and actively engaged with our peers, national associations, and policymakers in advocating for higher education and LSU. This week, LSU leadership will travel to Washington D.C. to articulate the critical importance of sustained federal research funding to LSU and Louisiana.