The University of Rochester is joining the Association of American Universities in a lawsuit against the U.S. Department of Energy.
The Department of Energy (DOE) announced a new policy on Friday intended to halt “inefficient spending” at universities. That includes capping funding for facilities and administrative costs at 15 percent.
In a memo, the agency says it provides $2.5 billion to more than 300 colleges for federally sanctioned research. The memo states that the action would save taxpayers about $400 million dollars annually.
“As these funds are entrusted to the department by the American people, the Department must ensure it is putting them to appropriate use on grant programs,” said a DOE memo outlining the new policy.
“To improve efficiency and curtail costs where appropriate, the Department seeks to better balance the financial needs of grant recipients with the Department’s obligation to responsibly manage federal funds.”
University of Rochester president Sarah Mangelsdorf said in a statement released on Monday that the funding cap would represent a loss of about $25 million dollars in annual funding from the federal agency to the university.
“We see the DOE announcement as an arbitrary violation of regulatory obligations and as a breach of contractual agreements negotiated in good faith with the agency,” Mangelsdorf said.
“More importantly, the cap would almost immediately cause severe disruption to the research programs of the Laboratory for Laser Energetics as well as programs in the Hajim School of Engineering & Applied Sciences, the School of Arts & Sciences, and other operations of the University.”
The Association of American Universities released a statement on Monday saying that funding cuts would set a “dangerous precedent” and would carry “enormous consequences for the “security, well-being and prosperity of the American people.”
“This action is ill-conceived and self-defeating for the American businesses, workers, and families who benefit from these scientific and technological advances as well as the nation as a whole,” the AAU said. “We look forward to presenting our case in court.”
This follows another lawsuit that the University of Rochester and other universities filed along with the AAU earlier this year against the National Institutes of Health over similar research funding cuts.
