The University of Iowa briefly told faculty to halt their applications for research grants through the National Institutes of Health and paused hiring of graduate students after the federal agency moved to cap indirect cost reimbursements.

But after a federal judge issued a nationwide injunction late Monday that blocked the change, the university reversed course. Still, the momentary pause shows how universities might respond to the cap if it ever takes effect.

NIH said Friday it would cap indirect cost reimbursements at 15 percent. The university previously received about 28 percent of its direct grants to cover costs that aren’t directly outlined for a particular project, such as lab space and patient safety.

In 2024, the university received more than $183 million in NIH funding, including more than $53 million to cover indirect costs, according to data compiled by Blue Ridge Institute for Medical Research.

“Please recognize that this is a very fluid situation, and we request and appreciate your patience,” Lois Geist, interim vice president for research, wrote in a campuswide memo Tuesday. “We are staying on top of events, consulting with peer institutions, and meeting with our congressional delegation. We will do our best to keep campus updated as we receive information that is useful in your work.”

But Republican Iowa senator Chuck Grassley has already said he’s in favor of the cap, even as the flagship university in his state has made clear that indirect costs are essential to carrying out biomedical research.

“Glad 2 c NIH lowered grant admin costs called ‘indirect costs’ to 15% This aligns w what major foundations use Just common sense!” Grassley wrote on social media. “Some orgs were getting as high as 50 or 60% We need 2 use taxpayers $$$ wisely Research$ for research not bureaucracy.”

According to United for Medical Research, NIH funding helps to support 18,452 jobs and 1,669 businesses in Iowa, where cancer and heart disease are the two most common fatal diseases.