Update: Court Issues Temporary Restraining Order Blocking DoD 15% F&A Cap

The U.S. District Court for the District of Massachusetts has issued a Temporary Restraining Order (TRO) preventing the Department of Defense (DoD) from enforcing its new policy capping indirect (Facilities & Administrative, or F&A) costs at 15% for financial assistance awards to institutions of higher education.

The TRO immediately blocks the DoD from implementing the 15% cap on all new awards issued on or after June 12, 2025, including any rejection or adverse treatment of proposals submitted at universities’ previously negotiated F&A rates. The court ordered the DoD to notify all affected funding recipients of the order within 24 hours and to confirm compliance with the court within 48 hours.

The TRO will remain in effect until further order of the court. A hearing on the motion is scheduled for July 2, 2025.

Faculty and staff who receive updates from the DoD regarding this policy should continue to forward all communications to ora@maine.edu.