An appellate court on Monday affirmed a lower-court block on the National Institutes of Health’s attempt to cap indirect cost reimbursement at 15 percent, preserving billions in overhead payments universities use to run labs, maintain facilities and support patient-safety operations. The First U.S. Circuit Court of Appeals said NIH bypassed statutory procedures and cited recent Supreme Court guidance in upholding district-court jurisdiction. Institutions and associations, including the Association of American Medical Colleges, had sued, arguing the cap would cripple research infrastructure at major medical centers. Clarification: "indirect costs" are institutional overhead expenses (facilities, admin, utilities) not tied to a single grant but essential to running research programs.