The federal District Court in Massachusetts (Allison D. Burroughs) has granted a preliminary injunction against the U.S. Department of Energy “Policy Flash” which attempts to set a universal cap on indirect overhead funding costs for Institutes of Higher Education on research projects. The Association of American Universities, Association of Public and Land-Grant Universities, American Council on Education and several public and private universities had sued to stop the policy change from taking effect.
The Court recognized that the U.S. Supreme Court, in a similar case brought by the state of California, had granted a stay on enforcement of an injunction on the grounds that the governmental defendants might win on a claim that the issues had to be decided in the Court of Claims. The Massachusetts Court distinguished the California case and concluded that it had jurisdiction to hear the claims.
The Court found that the plaintiffs had a reasonable chance of prevailing on their claim that the Department’s action was arbitrary and capricious under the Administrative Procedures Act, particularly in light of the history of failed attempts to change the rules and the Congressional interest in preventing limitations. (Association of American Universities v. Department of Energy, D. MA, No. 25-cv-10912, 5/15/25.)
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