CU Boulder federal agency updates and reminders

Dear colleagues, 

As summer gets underway and we look ahead to the July 4th holiday, I wanted to take a moment to connect and share a few updates. I also wanted to reiterate my gratitude for your resilience and continued dedication to advancing and disseminating knowledge during these challenging times. Whether you’re submitting proposals, conducting innovative research, or mentoring the next generation of scholars, your commitment to advancing our university’s mission is both evident and deeply appreciated. 

NSF 15% cap on indirect costs struck down 

On May 2, 2025, the National Science Foundation (NSF) announced a new policy establishing a standard 15% indirect cost rate for all grants and cooperative agreements. Thirteen universities— along with the Association of American Universities (AAU), the Association of Public and Land-Grant Universities (APLU), and the American Council on Education (ACE)—sued the NSF to block the cap. CU Boulder provided a declaration as part of the lawsuit. On June 20, Judge Indira Talwani of the U.S. District Court issued a decision in favor of the plaintiffs, ruling that NSF’s F&A policy is unlawful. 

The court found that NSF’s policy violated statutory and regulatory requirements, and that the policy was arbitrary and capricious on multiple grounds. For now, the policy has been vacated. NSF has 60 days to appeal the decision to the U.S. Court of Appeals for the First Circuit.  

The ruling is the third successful university challenge this year to federal agencies proposing to cap indirect cost recovery rates, following court victories against NIH and the Department of Energy. A fourth case against the Department of Defense is pending.  

DoD update lawsuit filed 

On June 16, AAU, APLU, ACE and 12 universities filed a lawsuit in District Court against the Department of Defense (DoD) policy to cap facility and administrative (F&A) reimbursements at 15% on all grants and to renegotiate all current grants to contain a 15% cap. A federal judge issued a temporary restraining order (TRO) regarding this policy on June 17. APLU, AAU, and ACE released the following joint statement regarding the lawsuit. CU Boulder provided a declaration as part of the lawsuit.  

Proposed revised indirect cost models  

The Joint Associations Group (JAG) — formed by APLU, AAMC, AAU, COGR and other associations — is collaborating with research organizations to reform indirect cost models. They have developed two new models for facilities and administrative (F&A) reimbursement, currently under review. The goal is to ensure fair cost reimbursement, reduce administrative burden, and streamline federal funding. Feedback will shape the final model to be presented to Congress and the Executive Branch by the end of June. These proposals will then require additional advocacy and discussion at the national level. 

• Two new models for F&A reimbursement have been proposed by the JAG and can be viewed on the Council for Government Relations’ website. Slides that describe the two models in detail can be downloaded here.  

• CU Boulder has been involved with this project by testing data with the proposed models and providing feedback to the JAG.  

• More information about the project can be found here. 

Important reminders 

Please reach out to your OCG Grant or Contract Officer for any of the following scenarios:  

• Certifications and assurances: As a principal investigator, if you are asked to sign or agree to any certifications, assurances or changes, please note that CU Boulder will only act upon official notifications from the sponsor as determined by OCG. 

• Scope of Work (SOW) and agency Priorities: If you have questions or concerns about whether grant activities are within the scope of work or consistent with agency priorities, reach out to your grant or contract officer at OCG.   

• Verbal agreements: If a federal agency requests you to verbally agree to nondiscrimination statements via Zoom, remember that these verbal agreements are not legally binding. All term modifications must be in writing. 

• Surveys or requests for award termination impact: Principal investigators may also be contacted by associations or interest groups for information on grant terminations. Keep in mind that responses may not be anonymous. Inform OCG’s Senior Director, Alexa Van Dalsem (alexa.vandalsem@colorado.edu) if you receive such requests. 

• No-Cost Extensions (NCEs): OCG recently received formal, advance notification from a federal sponsor that an award could not receive a no-cost extension, even though no request was made, so it is crucial to stay on top of schedules, deliverables and spending to minimize the need for NCEs. Reach out to OCG if you have questions.