Latest news with #indirectcosts
CBS News
16 hours ago
- Business
- CBS News
Johns Hopkins, University of Maryland sue U.S. Department of Defense over research funding cuts
Johns Hopkins University and the University of Maryland, College Park are fighting to protect millions of dollars in federal research funding, according to a lawsuit. The two universities, along with 10 others, are suing the department and U.S. Defense Secretary Pete Hegseth over an attempt to slash indirect cost rates to 15% for research funded by the department. In a memo issued on June 12, the Defense Department announced plans to cap the amount paid for indirect costs awarded on all research grants to 15%. According to the lawsuit, UMD currently has a 56% indirect costs rate, and JHU has a 55% rate. Indirect costs are resources used for operational expenses that are related to research activities. In a statement, Johns Hopkins said these costs are "necessary costs of conducting groundbreaking research that has made our nation the world's leading military superpower." How would cuts impact universities? Johns Hopkins University said the funds help offset a broad range of costs essential for its research, including equipment and electricity for labs, technical expertise and technological infrastructure, and other basic operational expenses. JHU said it has nearly 300 active Department of Defense grants totaling around $375 million across multiple years, with nearly half of that funding going to the School of Medicine and another 39% going to the Whiting School of Engineering. JHU's negotiated indirect cost rate for Department of Defense research grants was expected to remain at 55% through Fiscal Year 2026. Of the estimated $122 million in DOD funding that the university received in fiscal year 2024, nearly $90 million covered direct costs, and another $32 million accounted for the DOD's share of indirect costs. JHU co-invested to cover the remaining indirect costs. Johns Hopkins expects to receive similar amounts of DOD funding in fiscal years 2025 and 2026. However, if indirect costs are slashed, JHU said it could lose about $22 million. UMD receives approximately $125 million in DOD awards each year. The university could lose $7 million under Pete Hegseth's plan. Johns Hopkins grapples with federal funding cuts In February, Johns Hopkins University joined a federal lawsuit against the National Institutes of Health (NIH) after the agency announced that it would be limiting funding for indirect costs to 15%. That effort was blocked by a federal judge on June 17 after multiple states and institutions filed similar lawsuits. JHU lost more than $800 million from USAID grant terminations. Since January, 90 grants have ended, adding up to another $50 million in federal research funding. The university has been one of the top recipients of research funding from NIH. In June, the university announced it was pausing pay increases and reducing spending due to funding uncertainty.
Yahoo
2 days ago
- Politics
- Yahoo
US judge blocks Defense Department from slashing federal research funding
By Nate Raymond BOSTON (Reuters) -A federal judge on Tuesday temporarily blocked U.S. President Donald Trump's administration from carrying out steep cuts to federal research funding provided to universities by the U.S. Department of Defense. U.S. District Judge Brian Murphy in Boston issued a temporary restraining order at the behest of 12 schools including the Massachusetts Institute of Technology and Johns Hopkins University, as well as the Association of American Universities and two other academic trade groups. Those schools sued on Monday to challenge a policy the Defense Department recently adopted to cap reimbursement for indirect research costs at 15%, an action that mirrored funding cuts announced by the National Institutes of Health and U.S. Department of Energy that judges in Boston have also blocked. The funding cuts are part of the Trump administration's wide-ranging efforts to slash government spending. Defense Secretary Pete Hegseth in a May 14 memo said the new policy would save his department up to $900 million annually. Indirect costs are often used to fund facilities, equipment and research staff that provide value across multiple research projects, rather than being tied to a single project. The universities in their lawsuit argue that the 15% cap on reimbursement rates for those indirect costs flouted the regulatory regime governing them and Congress' express directives. Murphy, an appointee of Democratic President Joe Biden, scheduled a July 2 hearing to consider issuing a longer-term preliminary injunction. The administration did not immediately respond to a request for comment.
