FEDERAL JUDGE PREVENTS DOD FROM IMPLEMENTING 15 PERCENT CAP ON REIMBURSEMENT RATES
Earlier this week, Judge Brian E. Murphy of the United States District Court for the District of Massachusetts issued a temporary restraining order (TRO) in the lawsuit challenging the Department of Defense’s new policy capping reimbursement rates at 15 percent. In the case filed by AAU, APLU, ACE and 12 impacted higher education institutions, the TRO would prevent the administration "....implementing, instituting, maintaining, or giving effect to the immediately effective portions of the Rate Cap Policy, i.e., those portions implementing a 15% cap for all awards issued on or after June 12, 2025, including but not limited to rejecting or treating adversely proposals for DOD funding submitted at universities’ negotiated rates rather than the 15% rate."
