NCURA joins NACUBO and COGR, along with 15 other Organizations in filing of Amicus Brief Supporting Community Appeal of Indirect Cost Reimbursement Rate Cap
The amicus brief supports lawsuits against the new National Institutes of Health policy
June 16, 2025 (Washington, DC)-Today, the National Association of College and University Business Officers (NACUBO), COGR, and 16 other organizations filed an amicus brief in support of lawsuits against a National Institutes of Health (NIH) indirect cost rate cap.
The lawsuits were filed by the Association of American Universities, American Council on Education, Association of Public and Land-grant Universities, Association of American Medical Colleges, and other organizations, higher education institutions, and states to challenge a February policy from NIH that capped indirect cost rate reimbursements at 15% for institutions of higher education. This is an unprecedented federal pullback that would shift even more of the costs of conducting federal research to the colleges and universities performing this vital work on behalf of American taxpayers.
The reimbursements are an essential part of the federally funded research that higher education institutions perform for NIH and other government agencies. This research has real and unavoidable direct and indirect costs, many of which colleges and universities absorb so that campus faculty, staff, and students can deliver on the objectives of federal research grants and contracts. In FY23, institutions estimate they spent more than $28 billion of their own funds to support research, including over $6.8 billion in unreimbursed indirect costs.
For decades, colleges and universities have negotiated with the federal government for their reimbursement rates for indirect costs–from facilities maintenance and security to staffing to research equipment. The new 15% cap is a stark reduction from current rates, which are carefully reviewed and are already capped by the government.
From advances in cancer treatments to the technology that powers our smartphones, colleges and universities are leading innovators in the United States – and by capping indirect cost rates, the federal government is making new breakthroughs less likely
The amicus brief outlines the history of indirect cost rates and urges the court to rule that the NIH policy to cap the rates at 15% is unlawful. The brief states that "the rate change will cause immediate and irreparable harm to universities and the nation as a whole."
The brief continues-
"Universities employ tens of thousands of people and collaborate with state and local partners to help solve regional challenges through joint research and innovation. University research fuels spending in the regional economy, driving discoveries that launch new ventures, attract private investment, and make positive social impact. A massive reduction in universities' research budgets would immediately and seriously jeopardize these contributions to local regions, creating ripple effects throughout entire state economies."
NCURA stands with its colleague organizations in this important effort.
To learn more about indirect costs and the research U.S. colleges and universities conduct on behalf of federal agencies, watch "Understanding the Real Costs of Research."
Endorsers
American Association of State Colleges and Universities
American Speech-Language-Hearing Association (ASHA)
APPA: Leadership in Educational Facilities
Association of American Law Schools
Association of Independent Research Institutions
Association of Research Libraries
Association of University Technology Managers, Inc. (AUTM)
Campus Safety Health and Environmental Management Association (CSHEMA)
COGR
Council on Social Work Education
EDUCAUSE
NASPA-Student Affairs Administrators in Higher Education
National Association of College and University Business Officers
National Association of Independent Colleges and Universities (NAICU)
National Council of University Research Administrators
Society for College and University Planning (SCUP)
Society of Research Administrators International
URMIA - University Risk Management & Insurance Association
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Kathleen Larmett
Executive Director
National Council of University Research Administrators
Washington, DC
202-466-3894
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