Under Secretary of Defense for Research and Engineering Emil Michael signed the attached memorandum on June 12, 2025, to deviate from negotiated indirect cost rates for assistance awards to institutions of higher education and to implement a 15 percent indirect cost rate cap for awards to such institutions.

On July 18, 2025, the Court in the AAU v. DoD indirect cost rate litigation (D. Mass., No. 25-cv-11740) entered a preliminary injunction against DoD.  DoD will comply with the preliminary injunction while it remains in effect.