Appeals Court Cites Supreme Court Rulings to Still Block NIH Indirect Costs Cap

Ryan Quinn January 08, 2026 1 min read

Appeals Court Cites Supreme Court Rulings to Still Block NIH Indirect Costs Cap

Ryan Quinn
Inside Higher Ed

A federal appeals court is keeping in place the ban on the National Institutes of Health’s attempt to cap indirect research cost reimbursement rates for universities and researchers who receive its grant money.

The decision preserves institutions’ access to billions of dollars for annual expenses, such as lab costs and patient safety, which are not easily connected to specific projects. The NIH negotiates individual reimbursement rates with each institution, but a cap would change that and limit funding. U.S. District Court of Massachusetts judge Angel Kelley first blocked the rate cap last February, and it has remained blocked since.

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