Court Vacates NSF’s 15% Indirect Cost Cap

On June 20, 2025, the U.S. District Court for the District of Massachusetts vacated the National Science Foundation’s (NSF) policy capping indirect cost (F&A) recovery at 15% for Institutions of Higher Education. The court ruled that the policy was invalid, arbitrary, and capricious, and that NSF lacked the legal authority to impose the cap.

As a result, the University of Maine may continue to apply its federally negotiated indirect cost rate on all NSF proposals and awards. The now-vacated policy (NSF 25-034) no longer applies to current or future NSF funding.

The University is closely monitoring further developments and will provide updates as additional guidance becomes available.

For questions, please contact the Office of Research Administration.