Cases & Developments

The U.S. Department of Education (the Department) has proposed an extension to the currently approved Information Collection Request (ICR) on the Application Package for TRIO Training Program for Federal TRIO Programs. The goal of the ICR is provide the Department with information needed to evaluate, score and rank the quality of the projects proposed by institutions of higher education and public or private nonprofit agencies and organizations applying for a TRIO Training grant, in accordance with the Higher Education Act (HEA), which requires the collection of specific information and data necessary for applicants to receive an initial competitive grant and a non-competing grant for the second year. Comments are due by July 10, 2025.

U.S. Department of Education (the Department) issued a notice inviting applications for new awards for fiscal year 2025 for the Developing Hispanic-Serving Institutions (DHSI) Program. The DHSI Program provides grants to eligible institutions of higher education to expand educational opportunities for, and improve the academic attainment of, Hispanic students. Applications are due by July 3, 2025.

U.S. Department of Education (the Department) issued a notice inviting applications for new awards for fiscal year 2025 for “Personnel Development to Improve Services and Results for Children with Disabilities—Personnel Preparation of Special Education, Early Intervention, and Related Services Personnel” at Historically Black Colleges and Universities (HBCUs), Tribally Controlled Colleges and Universities (TCCUs), and Other Minority Serving Institutions (MSIs). The notice states that the purpose of the program is to (1) help address State-identified needs for personnel preparation in special education, early intervention, related services, and regular education to work with children, including infants, toddlers, and youth with disabilities; and (2) ensure that personnel have the necessary skills and knowledge to be successful in serving those children. The Department will fund projects within HBCUs, TCCUs, and MSIs that prepare special education, early intervention, and related services personnel at the bachelor’s degree, certification, master’s degree, educational specialist degree, and clinical doctoral degree levels to serve in a variety of settings. The deadline for applications is June 26, 2025.

Memorandum and Order Granting Plaintiffs’ Motion for a Preliminary Injunction. Plaintiffs, the Association of American Universities, American Council on Education, Association of Public and Land-Grant Universities, Brown University, California Institute of Technology, Cornell University, Board of Trustees of the University of Illinois, Massachusetts Institute of Technology, Regents of the University of Michigan, Board of Trustees of Michigan State University, Trustees of Princeton University, and University of Rochester challenged the Department of Energy (DOE) and its Secretary Chris Wright for the Department’s cut on indirect cost rates for government-funded research. Plaintiffs sought a Temporary Restraining Order (TRO) to prevent immediate and irreparable injury, which was granted on April 16, 2025, and followed by a hearing on April 28, 2025. Finding that the balance of equities and the public interest favor plaintiffs, the Court noted immense concern with “funding disruptions [that] would compromise crucial safety protocols for handling hazardous materials, high-voltage equipment, and radiation sources, potentially leading to accidents.” The Court subsequently denied defendants’ request for a stay pending appeal, reasoning that defendants offered no argument as to their basis for the stay, nor did they articulate what irreparable harm will result from the Court’s refusal to grant one. In finding a nationwide injunction a reasonable and appropriate remedy, the Court enjoined defendants from implementing, instituting, maintaining, or giving effect to the so-called “Rate Cap Policy” in any form with respect to postsecondary institutions nationwide until a further order is issued by the Court. 

U.S. Department of Defense (DoD) sent a memorandum to Senior Pentagon Leadership Commanders of the Combatant Commands Defense Agency and DoD Field Activity Directors on the implementation of a 15% indirect cost cap on assistance awards to institutions of higher education (IHEs). The memo states that DoD will pursue a lower cap on indirect cost rates for all new financial assistance awards to IHEs, consistent with federal regulation, which is intended to save up to $900 million annually. It also explains that the objective, in addition to saving money, is to repurpose the funds toward applied innovation, operational capacity, and strategic deterrence. The memo directs Under Secretary of Defense for Research and Engineering (USD(R&E)) to (1) notify the Office of Management and Budget of the intent to cap indirect cost rates; (2) develop and publish formal policy guidance that will govern DoD deviations from negotiated rates; (3) ensure the guidance is public and integrated into all upcoming grant solicitations, including Notices of Funding Opportunity; and (4) ensure new awards to IHEs contain the newly established standard cap. The memo directs that within the next 180 days USD(R&E) and DoD Components that manage DOD-funded financial assistance awards must initiate a department-wide effort to negotiate indirect cost rates on existing financial assistance awards to IHEs, wherever cooperative bilateral modification is possible; and that where bilateral agreement is not achieved, to identify and recommend lawful paths to terminate and reissue the award under revised terms.

Order Granting Plaintiffs’ Motion for a Temporary Restraining Order. Plaintiffs, the Association of American Universities, American Council on Education, Association of Public and Land-Grant Universities, Brown University, California Institute of Technology, Cornell University, Board of Trustees of the University of Illinois, Massachusetts Institute of Technology, Regents of the University of Michigan, Board of Trustees of Michigan State University, Trustees of Princeton University, and University of Rochester challenged the Department of Energy (DOE) and its Secretary Chris Wright for the Department’s cut on indirect cost rates for government-funded research. Plaintiffs sought a Temporary Restraining Order (TRO) to prevent immediate and irreparable injury following defendants’ announcement that the DOE will no longer use negotiated indirect cost rates and will instead default to a 15% indirect cost rate for all grant awards to postsecondary institutions. Plaintiffs alleged that the DOE policy violates the Administrative Procedure Act (APA) by way of deviating from the Congressionally approved negotiated cost rates, terminates existing grants, defies cost recovery regulations, and violates authorizing statutes. The Court found that plaintiffs made a sufficient showing that absent issuance of a TRO, they would sustain immediate and irreparable injury. It enjoined defendants and their officers, employees, servants, agents, appointees, and successors from implementing, instituting, maintaining, or giving effect to the DOE Policy Flash: Adjusting Department of Energy Grant Policy for Institutions of Higher Education (the “Rate Cap Policy”) in any form; from otherwise modifying negotiated indirect cost rates except as permitted by statute and by the regulations of the Office of Management and Budget; and from terminating any grants pursuant to the Rate Cap Policy or based on a grantee’s refusal to accept an indirect cost rate less than their negotiated rate. The Court also ordered defendants to provide written notice of the Order to all funding recipients affected by the Rate Cap Policy and to file a biweekly status report to confirm regular disbursement and obligation of federal financial assistance funds until the TRO expires. A hearing is set for April 28, 2025.