NSHE Federal Update: Latest Rulings and What They Mean for Our System and Campus Communities

The following is a statement from NSHE

Higher education institutions nationwide continue to face uncertainty as federal policy changes raise questions about research funding and other critical resources. We recognize that these shifts create challenges and concerns for our students, faculty, and staff, affecting their work, studies, and future plans. We at the Nevada System of Higher Education (NSHE) remain committed to keeping our community informed as we navigate these changes together.

While many questions remain, Nevada Attorney General Aaron D. Ford and a coalition of 21 other attorneys general in Commonwealth of Massachusetts v. National Institutes of Health (NIH), have secured an injunction that temporarily halts a federal limitation on indirect cost reimbursements for research grants, capping them at 15%. These reimbursements fund the essential resources that make research possible, including laboratory maintenance, utilities, compliance efforts, and administrative support. Without this ruling, NSHE institutions were at risk of losing approximately $50 million in research funding, jeopardizing groundbreaking projects, clinical trials, and future innovation.

Additionally, a federal court extended a block on an Office of Management and Budget (OMB) guidance that sought to freeze federal grants and loans (see our previous message on this topic), a move that had created widespread uncertainty across multiple sectors, including higher education. The ruling reinforces that federal funding authorized by Congress cannot be unilaterally withheld by the executive branch, addressing concerns that such a freeze could have disrupted critical programs and resources. While the immediate impact on NSHE institutions is still being assessed, we remain vigilant in monitoring such developments for potential impacts on the important work of our faculty and our campus communities.

During these uncertain times, NSHE continues to work closely with the Governor’s Office, the Attorney General’s Office, the Nevada Legislature, and our federal delegation to push for stability in federal funding streams that sustain higher education. We are profoundly grateful for the resilience, dedication, and support of our students, faculty, staff, and partners as we navigate these challenges together. Our collective strength continues to drive our mission forward, ensuring a bright future for our community.