Thirteen universities and three university associations filed suit against the National Science Foundation (NSF) and its Acting Director, challenging cuts to “indirect cost rates” for NSF-funded research grants. NSF implemented a policy capping indirect cost rates at 15% for all eligible universities, replacing the prior system in which rates were negotiated individually to reflect actual research costs. Plaintiffs argued that the policy unlawfully limits funding and eliminates the negotiated process. The plaintiffs brought claims under the Administrative Procedure Act (APA), asserting that the implementation of the Rate Cap Policy exceeded NSF’s authority, contradicted existing regulations, and was arbitrary and capricious. They ask the court to vacate the policy, declare it unlawful, and otherwise prevent its implementation.
