Memo: Temporary Restraining Order (TRO) on NIH Indirect Cost Rate Change – from Pamela Webb and April Coon

This email was sent to the AEL, PIs and Co-PIs on federal grants, academic leaders, and RIO staff and forwarded to the Grants Management User Network, UMN associate deans for research, Sponsored Financial Reporting, Sponsored Projects Administration staff, and the UMN Certified Approvers group by the Research and Innovation Office,


Dear Research Colleagues,

Federal judges in the U.S. District Court of Massachusetts have issued two separate temporary restraining orders: Ex Parte Emergency Temporary Restraining Order (TRO) and Emergency Motion for Temporary Restraining Order (TRO) that prevent NIH from implementing the changes to indirect cost rates in the Rate Change Notice (NOT-OD-25-068). The first order applies to 22 states (including Minnesota) and the second order applies nationally and will remain in effect until further order of the Court, but likely at least through the date of the hearing on February 21, 2025.

For the University of Minnesota, this means we will continue to propose, accept, charge, and bill NIH awards using our approved federally negotiated rates. Should we receive NIH awards limiting F&A to 15%, we will return those to NIH or a pass-through entity for correction prior to accepting them.

We will continue to issue and manage F&A on outgoing subawards based on the officially endorsed proposals submitted to us by those entities. For existing subawards, we will also continue to pay F&A on invoices based on the terms of existing subawards.

Please check the SPA Executive Orders and Other Policy Directives website regularly for the most up-to-date guidance. We will update you as more information is available. Please note that Sponsored Projects Administration and RIO will continue to work with partners and leaders across the University to ensure our University’s primary missions of teaching, research and outreach thrive.

Sincerely,

Pamela Webb, Associate Vice President for Research

April Coon, Director, Sponsored Projects Administration