CU Boulder appeals, F&A updates and Zoom office hours

Dear PIs, Deans, Chairs, Institute Directors and Associate Deans for Research,

I hope this note finds you well, and that you are already looking ahead to a restful long Memorial Day weekend.

I am sharing updates about in-progress appeals, F&A proposals and responses, and a Zoom office hour opportunity, all related to recent federal actions.

Appeals of Award Terminations:

RIO and OCG leadership have been working closely with university counsel throughout the federal transition to evaluate our legal options and take steps to best position the university for positive outcomes. Over the past two weeks, CU Boulder has filed or is in the process of filing appeals of terminations to sponsor agencies NSF, NIH, EPA, IMLS and NEH. While the appeals are tailored to the specific reasons for termination, in general the university has challenged these terminations as arbitrary and capricious. This means the agency’s decision to terminate was not reasonable and was not reasonably explained. For example, many of the agencies stated they were terminating because the award no longer effectuates program goals or agency priorities but failed to identify any such goals or priorities or how the project no longer serves them. As a result, the focus of these appeals is largely about agencies following improper process, rather than the substantive merits of individual grants and terminations.

These appeals are an important step to preserve the university’s right to take further action in court later, and are just one path of many the university is taking to seek relief for these terminations. The appeals are designed to dovetail with several pending multistate lawsuits seeking injunctions or other relief against executive orders, indirect cost rate caps or mass grant terminations. The university is also working with the Colorado Attorney General’s Office to ensure a coordinated response.

Updates on F&A 15% Cap Proposals

National Institute of Health (NIH): NIH's proposed 15% cap on indirect cost reimbursement has been permanently blocked by a federal judge. This decision follows a preliminary injunction issued earlier preventing NIH from implementing the cap while litigation continues. The judge found NIH's proposal to be arbitrary and capricious and in violation of federal statutes.

Department of Energy (DOE): The Association of American Universities (AAU), the American Council on Education (ACE), and the Association of Public and Land-Grant Universities (APLU) filed suit against the Department of Energy (DOE) over a policy to cap indirect cost reimbursements at 15% for research grants. U.S. District Judge Allison D. Burroughs issued a nationwide preliminary injunction on May 15, halting the DOE's plan until a final decision is made or a higher court overturns the injunction. CU Boulder filed a declaration of impact in the lawsuit.

National Science Foundation (NSF): The Association of American Universities (AAU), the American Council on Education (ACE), and the Association of Public and Land-grant Universities (APLU), along with 13 major research institutions, have filed a lawsuit against the National Science Foundation (NSF) in the U.S. District Court for the District of Massachusetts. The lawsuit challenges the NSF’s May 2 directive to cap indirect cost reimbursements at 15% and freeze all new and existing grant funding. CU Boulder filed a declaration of impact in the lawsuit.

NSF has paused the implementation of the NSF policy notice “Implementation of Standard 15% Indirect Cost Rate”, NSF 25-034, through June 13th, when a hearing is scheduled to occur. NSF Policy 25-034. OCG is submitting proposals to and accepting awards from NSF following regular processes.

DoD Memo on Indirect Costs

The Department of Defense (DoD) released a memo on May 14 outlining its intent to implement a 15% indirect cost rate cap on new awards to universities. The memo says the policy will go into effect 21 days from its publication, on June 4. The memo also announces plans to renegotiate the rate of existing awards no later than June 13. CU is working with our national partners to monitor implementation of the DoD indirect cost cap and any lawsuits that may follow.  

Office hours:

The federal grant landscape is rapidly changing, and we understand it has profound implications for our researchers. To that end, RIO leadership and university counsel will be hosting office hours over Zoom to provide updates and answer questions about federal actions and their impact on our research enterprise. The session is scheduled for Wednesday, May 28 from 10:30–11:30 a.m. I hope you will join us. Registration Link

Reminder regarding attestations from federal agencies:

RIO leadership is aware that sponsor agencies may contact PIs directly with directives to provide further information about their award or to sign attestations or compliance certifications. As a reminder, PIs should not sign any attestations or certifications directly. Instead, we ask PIs to follow guidance from the Office of Contracts and Grants (OCG). The OCG team can assist with review of attestations and related questions or concerns. OCG will also ensure that all necessary compliance and procedural checks are completed. By consulting with your OCG grant or contract officer, PIs help us maintain the integrity and accuracy of our research documentation and ensure that all attestations are handled correctly. 

For the latest information and resources, please monitor the university’s:

• Federal Transition website: For campuswide resources.  Additional guidance for CU Boulder staff and faculty (and students) can be found on the Federal Transition Sharepoint Site. You must log in with your IdentiKey.
• Research and Federal Funding website: For research and innovation-specific information
• CU System Office of Federal Relations Federal Transition Updates: For CU System resources, information and updates

Updates and additional agency specific information will be posted here as they become available. For inquiries about specific contracts or grants, please contact your OCG grant or contract officer. For other questions, reach out to Buff Info, the university’s centralized point of contact for resources and information.  

I am sincerely thankful for the resilience, commitment and hard work you bring each day. Your dedication makes a difference and inspires others. I wish you all a wonderful Memorial Day Weekend.

Regards,

Massimo Ruzzene
Senior Vice Chancellor for Research & Innovation and Dean of the Institutes
Slade Professor of Mechanical Engineering
Research & Innovation Office
University of Colorado Boulder