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

Why this Matters

The plaintiffs allege the uniform reimbursement cap of 15 percent for all new research grants, regardless of the indirect cost needs of the institution, outlined in the Rate Change Notice issued by the defendants violates the Administrative Procedure Act. Institution specific government reimbursements for indirect costs ensures that each research institution receives adequate funding to support overall grant-funded research efforts.

Potential Impact

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