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You are here: Home / Announcements / Update – Lawsuit Against NIH F&A Cap

Update – Lawsuit Against NIH F&A Cap

February 21, 2025

A federal judge has extended the temporary block on the National Institutes of Health’s (NIH) plan to reduce F&A payments to universities to 15%. Judge Angel Kelley’s decision will keep the restraining order in place until a final ruling is made. The initial order followed a lawsuit from 22 state attorneys general, with the block later expanded nationwide after a legal challenge from higher education organizations and major research universities.

At this time, please continue use of USC negotiated F&A rates until additional guidance is received.

For more information on federal directives and their implications, please also visit our DCG Federal Directives page.

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