A U.S. Court of Appeals affirmed a lower court injunction preventing the National Institutes of Health from imposing a 15% cap on indirect cost reimbursements to universities and research institutions. The ruling concluded NIH’s supplemental guidance exceeded statutory appropriations language and agency regulations, preserving current overhead reimbursement practices while leaving open the prospect of further appeals. Attorneys general who challenged the cap argued the decision protects academic research funding streams, and analysts noted the ruling could modestly support life‑science tools and academic activity sentiment. The litigation and potential legislative proposals leave longer‑term institutional funding and pricing dynamics uncertain.