May 15, 2025
AAU v DOE (D Mass May 15, 2025) Opinion and Order Granting Preliminary Injunction on DOE Indirect Cost Policy
Plaintiffs Association of American Universities (“AAU”), Association of Public and Land-Grant Universities (“APLU”), American Council on Education (“ACE,” and, with AAU and APLU, the “Organizational Plaintiffs”), and several public and private universities (together with the Organizational Plaintiffs, “Plaintiffs”) seek a preliminary injunction halting implementation of a Department of Energy (“DOE” or “the Department”) “Policy Flash,” which sets a universal cap on indirect funding costs for Institutes of Higher Education (“IHEs”) (the “Rate Cap Policy” or the “Policy Flash”). Plaintiffs allege that the Rate Cap Policy is arbitrary and capricious, impermissibly retroactive, and contrary to governing law.
For the foregoing reasons, the Plaintiffs’ motion for a preliminary injunction is GRANTED.
April 16, 2025
Temporary Restraining Order on DOE Rate Cap Policy
Defendants and their officers, employees, servants, agents, appointees, and successors are hereby enjoined from implementing, instituting, maintaining, or giving effect to the DOE Policy Flash: Adjusting Department of Energy Grant Policy for Institutions of Higher Education (IHE) (the “Rate Cap Policy”) in any form; from otherwise modifying negotiated indirect cost rates except as permitted by statute and by the regulations of the Office of Management and the Budget; and from terminating any grants pursuant to the Rate Cap Policy or based on a grantee’s refusal to accept an indirect cost rate less than their negotiated rate.
April 15, 2025
Order Granting Preliminary Injunction
Nonprofits argue that the Government—in summarily freezing billions of dollars in IIJA and IRA funding—ran afoul of three APA provisions: its requirement that agency actions (1) are not “arbitrary and capricious,” (2) are not “in excess” of the authority that Congress granted the agencies, and (3) are not otherwise contrary to law. The Nonprofits now move for a preliminary injunction—a temporary court order requiring the agencies to turn the funding spigots back on, at least while their case is pending. (ECF No. 26.)
The Nonprofits’ Motion is GRANTED.
April 14, 2025
APLU, AAU, & ACE Legal Challenge to Cuts to Critical Energy Research
The Association of Public and Land-grant Universities (APLU) today joined with the Association of American Universities (AAU) and the American Council on Education (ACE) as plaintiffs in a lawsuit challenging the Department of Energy’s action limiting Facilities and Administrative (F&A) reimbursements (indirect cost rate) to 15% for research grants to colleges and universities. This action would have an immediate and dire impact on critical energy, physical sciences and engineering research nationwide. “It also sets a very dangerous precedent that could be used to undermine federal investments in research at many other federal agencies. A similar attempt to unilaterally cap the indirect cost rate for NIH grants to colleges and universities was enjoined nationwide.
“F&A costs are the real and necessary costs of conducting the groundbreaking research that has led to so many advances, that has positioned the United States as a global scientific leader and has improved the lives of our nation’s citizens. With funding from DOE, our nation’s researchers are driving innovations in fusion and advanced nuclear energy, nuclear security, microelectronics, materials research, advanced computing, fossil and alternative energy research, grid technologies, quantum science, and AI in furtherance of American science and a secure energy future.”
April 11, 2025
The Department of Energy (DOE) today announced a new policy action aimed at halting inefficient spending by colleges and universities while continuing to expand American innovation and scientific research. In a new policy memorandum shared with grant recipients at colleges and universities, DOE announced that it will limit financial support of “indirect costs” of DOE research funding to 15%.
March 11, 2025
DOE Rescission of Notice
DOE believes that few, if any, funding agreements issued by the Office of Science are “equity-
related” under section 2(b)(i) of Executive Order 14151, 90 FR 8339, entitled Ending Radical and Wasteful Government DEI Program and Preferencing,0F nonetheless, out of an abundance of caution it
is rescinding the following communication effective immediately: DEI, CBP/PIER Plans and
Justice 40 related activities suspension letter dated, January 31, 2025.
January 31, 2025
DOE Contracting Officer Notification of DOE’s Suspension of DEI, CBP or PIER Plan, and Justice 40 Requirements in Financial Assistance Agreements –
On January 20, 2025, the President signed an Executive Order titled “Ending Radical and Wasteful Government DEI Programs and Preferencing,” which mandates the termination of all Diversity, Equity, and Inclusion (DEI) performance requirements for employees, contractors, or grantees. In response, the Department of Energy (DOE) has directed the immediate suspension of DEI programs, Community Benefits Plans (CBP), and Justice40 activities in financial assistance awards. Effective immediately, all DEI, CBP/PIER Plans, and Justice40 activities associated with DOE’s Office of Science financial assistance awards are suspended pending a review. For any legal concerns or questions, recipients are advised to contact the DOE Contracting Officer, Cynthia A. Anderson.
January 27, 2025
Executive Order update to PIER Plan requirement
The U.S. Department of Energy’s Office of Science has suspended Promoting Inclusive and Equitable Research (PIER) Plans and halted the use of Community Benefits Plans (CBP) and Justice40 requirements in response to a new executive order ending diversity, equity, and inclusion (DEI) programs. Open solicitations will be amended to remove the PIER Plan requirement, and applicants can resubmit proposals without them. Selection decisions will not consider PIER Plans, and further guidance will be provided as available.
January 27, 2025
Department of Energy: CBP and DEI Notification to existing recipients
The President has issued 43 Executive Orders, Presidential Memoranda, and Proclamations, including an Executive Order entitled Ending Radical and Wasteful Government DEI Programs and Preferencing.
January 27, 2025
Cease all activities associated with DEI and CBP
The memorandum from Sara Wilson, Acting Head of Contracting Activity for Energy Efficiency & Renewable Energy, directs all recipients and subrecipients of DOE funding to cease activities related to Diversity, Equity, and Inclusion (DEI) programs, Community Benefits Plans (CBP), and Justice40 requirements, following President Trump’s executive orders. Effective immediately, costs associated with these activities will not be reimbursed, and recipients must enforce this directive with their subrecipients and contractors. Additional guidance will be provided, and award modifications will be initiated to align with the executive orders.
January 20, 2025
Agency-wide Review of Program and Administrative Activities
The memorandum from the Acting Secretary of Energy, Ingrid C. Kolb, dated January 20, 2025, mandates an agency-wide review of all programmatic and administrative activities within the Department of Energy (DOE). This review aims to ensure alignment with the new Administration’s policies and priorities, including budgetary considerations. Effective immediately, all personnel actions, grants, loans, funding opportunities, contracts, procurement actions, rulings, decisions, enforcement actions, and publications are to be halted pending review. The goal is to ensure that DOE’s initiatives are consistent with Congressional authorizations and the Administration’s priorities, and that resources are allocated efficiently.
Rescission of DEI, CBP, and Justice40 Policy Flashes, Acquisition Letters, and Financial Assistance Letters – PF 2025-16