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 reimbursement for grantees, ruling the NIH's supplemental guidance exceeded appropriations language and regulatory authority. The decision preserves higher overhead rates for universities and research institutions pending further appeals. The ruling, which applies broadly to institutions regardless of state participation in the lawsuit, removes an immediate threat to academic research budgets and was hailed by university coalitions. The court’s opinion emphasized statutory constraints on agency rulemaking and the role of appropriations riders. Market analysts expect a modest rebound in academic activity and research services demand if institutional confidence improves, though the government could seek Supreme Court review. The decision affects grant budgeting, university contracts, and life science tools companies that serve academia.