Court Blocks Pentagon From Cutting Funding for Educational Institutions

A federal judge has blocked the Department of Defense (DOD) from implementing a limit on the agency’s research funding to academic institutions, according to a June 17 temporary restraining order issued by the court.
The issue stems from a May 14 DOD memo announcing its plan to restrict funding for indirect costs in research projects undertaken by educational institutions to a maximum of 15 percent. In a June 12 memo, the DOD confirmed the implementation of the rate cap.
The DOD provides financial awards to higher educational institutions to conduct research and development. As part of these awards, the department also funds “indirect costs” incurred by the institutions, with costs falling into two categories: facilities and administration. Facility costs include those related to buildings and equipment, while administrative expenses are related to office and personnel….