University joins lawsuit against NSF over indirect cost rate cap

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Madhav V. Rajan Dean of the University of Chicago Booth School of Business, George Pratt Shultz Professor of Accounting | The University of Chicago

University joins lawsuit against NSF over indirect cost rate cap

Yesterday, the University of Chicago joined a coalition of academic institutions in legal action against the National Science Foundation (NSF). The lawsuit, filed in the U.S. District Court in Massachusetts, challenges NSF's decision to implement a standard indirect cost rate of 15% for new grants and cooperative agreements.

The University of Chicago is accompanied by organizations such as the Association of American Universities, American Council on Education, and the Association of Public and Land Grant Universities, along with several other research universities. They argue that NSF's proposed cap will negatively impact scientific research at universities by limiting federal funding necessary for essential infrastructure and personnel.

According to the plaintiffs, this limitation contradicts existing federal law and threatens technological advancement. At the University of Chicago specifically, NSF awards fund significant research efforts in fields like artificial intelligence, machine learning, particle physics, quantum computing, nanomaterials, economics, and living systems physics. This research is said to provide numerous benefits to the public by fostering scientific discoveries and technological innovations while also contributing to workforce development and economic growth.

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