Legislation passed in a set of bills signed by the White House prevents federal agencies from imposing abrupt caps on universities’ negotiated indirect‑cost (overhead) reimbursement rates for the coming fiscal year. The move halts administration proposals that had threatened to impose a flat 15% indirect rate and sparked legal challenges and widespread alarm across research campuses last year. University research offices and sponsored‑programs administrators say the legislation buys time, preserving current negotiated rates and averting an immediate multi‑billion dollar funding shock. The law does not eliminate broader policy debates over overhead rates or long‑term reform; it simply prevents unilateral agency changes for the next fiscal year. Offices that manage grant budgets should still work with general counsel and federal relations to monitor evolving proposals and to model contingency scenarios if future rulemaking resumes.
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