Association of American Universities v. Department of Energy
Case Overview
Universities led by the Association of American Universities challenged a Department of Energy Policy Flash that imposed a universal cap on indirect research costs for grant recipients. Judge Allison Burroughs of the District of Massachusetts granted a universal preliminary injunction on May 15, 2025, finding the plaintiffs likely to succeed on claims that the cap was arbitrary and capricious, conflicted with existing regulations, and was impermissibly retroactive. The government (the Department of Energy and Secretary Christopher Wright) appealed to the First Circuit as No. 25-1727.
Legal Issues
BrynoDC Coverage 4 videos
TikTok 
TikTok TikTok The Application
The court found Hegseth's reclassification of indirect costs as wasteful to be 'entirely misleading' and lacking rational basis. The government's failure to appeal the earlier injunction reflects recognition of the weakness of its position against the universities' contractual and statutory claims.
The Conclusion
The government did appeal, then voluntarily dismissed its own appeal under Federal Rule of Appellate Procedure 42(b) on March 16, 2026, after the Department issued a January 27, 2026 agency action and the court asked whether that mooted the case. The First Circuit entered judgment and issued the mandate the same day, leaving the district court's preliminary injunction against the indirect-cost cap in place and concluding the litigation. The defendant is the Department of Energy under Secretary Christopher Wright, not the Department of Defense under Secretary Hegseth, and the ruling below was a preliminary injunction, not a summary judgment.
Flag an issue
This tracker is maintained by BrynoDC and is free because readers fund it. Support