Dear Faculty, Staff and Students, 

On Friday, the Department of Energy (DOE) announced a new policy cutting reimbursement of facilities and administrative (F&A) costs to 15% for all research grants to colleges and universities. On Monday, the University of Illinois Urbana-Champaign—along with the Association of American Universities, the American Council on Education, the Association of Public and Land-grant Universities and a number of public and private research universities—joined in filing a federal lawsuit challenging DOE’s unlawful policy that would lead to devastating effects on vital research. You can read the full text of the legal complaint on the Association of American Universities (AAU) website.  

The AAU described the national impact on higher education in a statement:  

This action would have an immediate and dire impact on critical energy, physical sciences and engineering research nationwide. It also sets a very dangerous precedent that could be used to undermine federal investments in research at many other federal agencies. A similar attempt to unilaterally cap the indirect cost rate for NIH grants to colleges and universities was enjoined nationwide. F&A costs are the real and necessary costs of conducting the groundbreaking research that has led to so many advances, that has positioned the U.S. as a global scientific leader, and has improved the lives of our nation’s citizens.

F&A costs are critical to funding the vital support systems for the university’s research, including the physical space, support staff, electricity and other essential infrastructure that helps to make research possible. These are not supplementary or superfluous. The important work you do happens in a complex ecosystem, and any funding disturbance invariably has ripple effects throughout the institution.  

We are seeking to halt the proposed cut in funding. DOE’s policy runs afoul of the longstanding regulatory frameworks governing federal grants and foundational principles of administrative law.  

Research drives new ideas for a more beneficial and prosperous future. This action only slows or stops progress, harms our national security and threatens our competitiveness with other nations. The learning and discovery that you participate in every day is too important to risk, and we are acting to protect our momentum toward a better world. 

Sincerely, 

Robert J. Jones
Chancellor

John Coleman
Provost