Update: Court Issues Preliminary Injunction Blocking DOE 15% F&A Cap

May 16, 2025 Federal Funding

On May 15, 2025, the U.S. District Court for the District of Massachusetts issued a preliminary injunction in the case Association of American Universities et al. v. U.S. Department of Energy. This order blocks the Department of Energy (DOE) from enforcing its April 11, 2025 policy that capped indirect cost recovery (Facilities & Administrative or F&A costs) at 15% for all grants awarded to institutions of higher education.

The Court found that the DOE’s Rate Cap Policy was likely unlawful on multiple grounds, including being arbitrary and capricious, in conflict with federal regulations, and impermissibly retroactive. As a result, DOE is now prohibited from enforcing the 15% cap nationwide—both on current and future awards—until further court order.

What this means for UMaine researchers:

The 15% indirect cost limit is not currently enforceable.
DOE must continue honoring negotiated F&A rates, such as those memorialized in UMaine’s NICRAs.
UMaine remains eligible for full indirect cost reimbursement under existing agreements.

Principal Investigators (PIs) are encouraged to remain attentive to any communications from the Department of Energy and to forward all DOE-related updates or correspondence to ora@maine.edu.

The University of Maine is closely monitoring this legal development and its potential impact on ongoing and future DOE awards. Further updates will be posted as additional guidance becomes available.