Chancellor Robert Jones announced the University has joined a lawsuit against the federal government in a Massmail on Tuesday. The lawsuit challenges the Department of Energy’s proposed policy to cap reimbursement of facilities and administrative costs at 15% for all research grants to institutions of higher education.
“F&A costs are critical to funding the vital support systems for the university’s research, including the physical space, support staff, electricity and other essential infrastructure that helps to make research possible,” Jones said in the Massmail.
The lawsuit, whose plaintiffs include the Association of American Universities and the American Council on Education, among others, seeks to put a temporary hold on the cap placed by the DOE on Friday.
“These actions are part of a continuing and dangerous effort to erode federal support for university-based research,” the groups said in a statement. “The proposed DOE cap would have an immediate and damaging impact on critical energy, physical sciences, and engineering research at more than 300 colleges and universities nationwide.”
Robin Kaler, associate chancellor for strategic communications and marketing, provided an email statement to The Daily Illini explaining the University’s decision to join the lawsuit.
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“We have joined several national higher ed associations and other leading research universities in this lawsuit because DOE’s policy runs afoul of the longstanding regulatory frameworks governing federal grants and foundational principles of administrative law,” Kaler said.
The plaintiffs allege the DOE’s policy mirrors recent efforts by the federal government to cap the indirect cost rates of the National Institute of Health at 15%. This policy would affect research at the University, which spent a total $1.44 billion on research in fiscal year 2024.
A federal judge ruled the NIH indirect cost rate cap was unlawful in March.
On Friday, United States Secretary of Energy Chris Wright commented on the proposed funding changes in a press release. He said the DOE’s funding should be limited to scientific research — not administrative costs or facility upgrades.
“With President Trump’s leadership, we are ensuring every dollar of taxpayer funding is being used efficiently to support research and innovation – saving millions for the American people,” Wright said in the press release.
However, Jones pointed out scientific research at the University does not occur in a vacuum.
“These (facilities and administrative costs) are not supplementary or superfluous,” Jones said. “The important work you do happens in a complex ecosystem, and any funding disturbance invariably has ripple effects throughout the institution.”
Jones concluded the Massmail by stating the importance of research and that the proposed cut would threaten the nation’s ability to compete on the global stage.
“Research drives new ideas for a more beneficial and prosperous future,” Jones said. “This action only slows or stops progress, harms our national security and threatens our competitiveness with other nations. The learning and discovery that you participate in every day is too important to risk, and we are acting to protect our momentum toward a better world.”
