Lead: Federal agencies have halted implementation of the Trump administration’s plan to cap indirect cost reimbursements for university research after pushback from Congress and court challenges. Agencies including NIH and the Department of Energy paused rulemaking this year following legal objections and pressure from lawmakers and university research offices. The move preserves current indirect-cost recovery practices used to support campus facilities, compliance and core research infrastructure. Katherine Knott reported the developments for higher-education audiences, capturing agency statements and legal filings. What happened: The administration’s proposal would have limited reimbursements that universities claim for administering and hosting federally funded research, a shift that institutions warned would force cuts to labs, staff and overhead. Lawmakers in both parties and university associations argued the caps would destabilize long-term research projects and public-private partnerships. Why it matters: Indirect-cost rates are a major funding stream for campus research ecosystems. Any sustained cap would redistribute costs to universities and could reshape decisions on sponsored projects, facility investments and collaborative grants.