The NSF announced on May 2nd that IDC rates for all institutions of higher education would be capped at 15%. However, several lawsuits have challenged this change, and the NSF indicated that it is temporarily pausing implementation of the reduced IDC to allow courts to decide on its legality.
Effective June 18, 2025, the National Science Foundation (NSF) is extending the temporary pause in implementation of NSF Policy Notice: Implementation of Standard 15% Indirect Cost Rate (NSF 25-034) until the District Court for the District of Massachusetts issues a decision, in accordance with a voluntary stay filed in the United States District Court for the District of Massachusetts in Association of American Universities, et al. v. National Science Foundation, et al., No. 25-cv-11231.
This policy applies to all new awards and associated subawards to Institutes of Higher Education (IHEs). New NSF awards and associated subawards issued during this pause will not implement NSF 25-034 but will include a term applying NSF 25-034 for the entirety of the award if there is a court decision permitting application of the policy.
For now, UMass PIs and research administration staff should continue to prepare and submit NSF proposals with our federally negotiated indirect cost rates.