Association of American Universities et al. v. Department of Health and Human Services et al.

Why this Matters

The plaintiffs challenge the National Institutes of Health’s (NIH’s) rate change notice, which adopts a uniform reimbursement cap of 15 percent for all new and existing NIH grants as of February 10, 2025, regardless of the indirect cost needs of the institution. This appeal addresses whether the district court was correct in finding that the defendants’ violated the Administrative Procedure Act and permanently enjoining the defendants’ implementation of the guidance and reimbursement cap.  

Potential Impact

Lowering and capping the indirect cost rate for NIH-funded research jeopardizes grantees’ ability to effectively conduct critical health research.