The U.S. District Court for the District of Massachusetts has issued a Temporary Restraining Order (TRO) blocking the Department of Energy (DOE) from implementing its recently announced 15% cap on Facilities and Administrative (F&A) costs for all grants to institutions of higher education. This legal action stems from a lawsuit filed by the Association of American Universities (AAU) and other plaintiffs.
What the TRO Does:
- Halts enforcement of the 15% F&A cap (DOE Policy Flash: Adjusting Department of Energy Grant Policy for Institutions of Higher Education).
- Prevents DOE from terminating grants based on a grantee’s refusal to accept a reduced indirect cost rate.
- Requires DOE to provide written notice of the TRO to all affected funding recipients by April 17, 2025.
- Mandates DOE provide biweekly status reports to the court confirming regular disbursement of federal financial assistance funds.
What’s Next:
- DOE must file an opposition by Tuesday, April 22, 2025.
- Plaintiffs may reply by Friday, April 25, 2025.
- An in-person hearing is scheduled for Monday, April 28, 2025 at 11:00 AM.
USC is closely analyzing the TRO to assess its full implications. We recognize that certain aspects of the TRO require further clarification, and we will provide guidance as more information becomes available. This TRO remains in effect until further order of the court. DCG will continue monitoring the case closely and provide updates as the situation develops.