Donald Trump suffers another loss in court as universities band together over $400m funding halt

Washington D.C.: A federal judge has temporarily halted the Donald Trump administration's plan to slash $400 million in annual research funding to universities.

US District Judge Allison Burroughs issued a restraining order after MIT, Princeton, Caltech, and other schools sued the Energy Department over its 15% cap on reimbursements for "indirect" research costs — expenses like facilities and equipment that support multiple projects.

The universities warned the cuts would force layoffs, facility closures, and harm early-career scientists. Judge Burroughs will decide on a longer injunction at an April 28 hearing.

The lawsuit, joined by Brown, Cornell, and other major institutions, argues the arbitrary reduction violates research agreements. Academic groups call the move an existential threat to US scientific competitiveness.

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The judge, an appointee of Democratic President Barack Obama, said she would consider whether to issue a longer-term preliminary injunction during an April 28 hearing. 

The Energy Department announced on Friday that it would cut more than $400 million in annual spending. The department said the policy would bring “greater transparency and efficiency” to federal government spending.