Congress enacted language blocking federal agencies from imposing steep new caps on indirect costs for another fiscal year, halting a proposal that would have slashed billions from university overhead reimbursements and provoked lawsuits. Universities hailed the reprieve as preserving negotiated facilities and administrative rates that fund labs, compliance and core research infrastructure. Meanwhile, a national report shows state higher‑education appropriations barely grew—only 1 percent year‑over‑year—marking the slowest rise since 2021. The combination leaves institutions navigating a mixed funding picture: short‑term protection for research overhead alongside longer‑term pressure from constrained state budgets that could force program cuts and operational tightening.