Judge Allows NSF To Withhold Millions in Research Funding
- By The Financial District

- Aug 9
- 1 min read
Updated: Aug 10
The National Science Foundation (NSF) can continue withholding hundreds of millions of dollars from researchers in several states until ongoing litigation is resolved, a federal court ruled, Adithi Ramakrishnan reported for the Associated Press (AP).

U.S. District Judge John Cronan in New York declined to compel the NSF to immediately resume payments, as requested by the 16 Democrat-led states that brought the lawsuit — including New York, Hawaii, California, Colorado, and Connecticut.
In his ruling, Cronan said he would not grant a preliminary injunction in part because the Court of Federal Claims may have jurisdiction, since the dispute centers primarily on funding.
He also ruled that the states failed to show that the NSF’s actions were inconsistent with the agency’s legal mandate.
The lawsuit, filed in May, alleges that the NSF’s revised grant-funding priorities — along with a new cap on what’s known as indirect research expenses — “violate the law and jeopardize America’s longstanding global leadership in STEM.”
Indirect costs refer to administrative expenses necessary for conducting research, such as paying support staff and maintaining equipment.
While another federal court had already blocked the cap on those indirect costs, the plaintiffs had also sought an injunction to restore funding to the previously reduced grants — a request Cronan denied.





![TFD [LOGO] (10).png](https://static.wixstatic.com/media/bea252_c1775b2fb69c4411abe5f0d27e15b130~mv2.png/v1/crop/x_150,y_143,w_1221,h_1193/fill/w_179,h_176,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/TFD%20%5BLOGO%5D%20(10).png)









