Universities sue energy Department over cuts
By: Dietrich Knauth
Reuters
NEW YORK - A group of U.S. universities sued the Department of Energy in Massachusetts federal court April 14 [2025] over cuts to federal research funding in areas like advanced nuclear technology, cybersecurity, novel radio-active drugs, and upgrades to rural electrical grids. The universities - which include Massachusetts Institute of Technology, Princeton University, California Institute of Technology, and the University of Illinois - asked a federal judge in Boston to immediately block Prescient Donald Trump;s administration form moving forward with a policy change meant to reduce government spending in support of "indirect" research costs, which are not readily attributable to specific projects.
..... Indirect costs are often used to fund facilities, equipment and research staff that provide value across multiple research projects, rather than being tied to a single project, according to the lawsuit. Arbitrary cuts to indirect research costs will force universities to lay off staff, shatter expensive facilities, and devastate the careers of young scientists, the universities say.
....."If DOE's policy is allowed to stand, it will devastate scientific research at America's universities and badly undermine our nation's enviable status as a global leader in scientific research and innovation," the universities wrote in their complaint. The DOE did not immediately respond to a request for comment on the lawsuit. The DOE announced Friday [04/11/2025] that it would cut more than $400 million in annual spending by setting an across-the-board 15% reimbursement rate for indirect costs of research. DOE said that the policy would bring "greater transparency and efficiency" to federal government spending.
..... Many of the universities involved in the lawsuit have negotiated far higher "indirect" rates then the 15% proposed by DOE policy.
..... The University of Michigan had an indirect cost rate of 56% in 2024 for its research into nuclear technology, advanced battery technologies, and next-generation engine and fuel technologies, and it would lose $31.1 million in funding if the DOE policy goes forward.