The U.S. Court of Appeals for the First Circuit upheld a permanent injunction preventing the National Institutes of Health from imposing a 15% across‑the‑board cap on indirect (overhead) costs for grant recipients. Judges found the district court had proper jurisdiction and that NIH’s supplemental guidance conflicted with appropriations law and HHS regulations. The decision preserves existing reimbursement practices for universities and research institutions and reduces near‑term funding uncertainty for academic labs. State attorneys general and university coalitions had challenged the cap; the ruling may be appealed to the Supreme Court but restores budget predictability for NIH‑levered research and related life‑science suppliers.