Federal rulings impact higher education funding nationwide

Agency
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Patty Charlton Chancellor | Nevada System of Higher Education Website

Higher education institutions across the United States are grappling with uncertainty due to recent changes in federal policy affecting research funding and other resources. The Nevada System of Higher Education (NSHE) has acknowledged the challenges these shifts present for students, faculty, and staff.

Nevada Attorney General Aaron D. Ford, along with a coalition of 21 attorneys general, has achieved an injunction in the case Commonwealth of Massachusetts v. National Institutes of Health (NIH). This legal action temporarily stops a federal limitation on indirect cost reimbursements for research grants, which were capped at 15%. These reimbursements support essential resources such as laboratory maintenance and administrative support. Without this injunction, NSHE institutions risked losing approximately $50 million in research funding.

Furthermore, a federal court has extended a block on guidance from the Office of Management and Budget (OMB) that aimed to freeze federal grants and loans. This ruling underscores that Congress-authorized federal funding cannot be withheld by the executive branch unilaterally. While the impact on NSHE is still being evaluated, there is ongoing vigilance regarding how these developments might affect faculty work and campus communities.

"These shifts create challenges and concerns for our students, faculty, and staff," stated NSHE representatives.

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