Update on Department of Defense F&A Policy Litigation

Last Friday, Judge Brian E. Murphy of the U.S. District Court for Massachusetts granted a preliminary injunction in the lawsuit APLU, AAU, ACE, and 12 higher education institutions brought forward challenging the U.S. Department of Defense’s policy. Injunctive relief is granted specifically to all plaintiffs and their members.

Judge Murphy’s order reads:

“The Court, therefore, pursuant to Rule 65(a) of the Federal Rules of Civil Procedure, PRELIMINARILY ENJOINS Defendants, their agents, and anyone acting in concert or participation with Defendants from implementing, instituting, maintaining, or giving effect to the immediately effective portions of the Rate Cap Policy, i.e., those portions implementing a 15% cap for all awards issued on or after June 12, 2025, including but not limited to rejecting or treating adversely proposals for DOD funding submitted at universities’ negotiated rates rather than the 15% rate, in any form with respect to University Plaintiffs and Organizational Plaintiffs’ member universities until further order issued by this Court. This includes where a University Plaintiff or Organizational Plaintiffs’ member university is a sub-grantee or collaborator.”

As a helpful resource, APLU’s F&A webpage includes the major developments in all cases (NIH, DOE, NSF, and DOD).