A person walks across the mall on the Orono campus of the University of Maine in July 2023. Derek Davis/Portland Press Herald

A federal judge has halted a new Department of Energy policy that would cut research funding to colleges and universities, including millions given to the University of Maine.

The department announced two weeks ago that it would limit how much money it lets grant recipients use for “indirect costs” to 15% — a decision it said would save $405 million out of the annual $2.5 billion in awards.

A group of universities and college associations then sued the agency in Massachusetts federal court last week, arguing the policy would “devastate scientific research at America’s universities and badly undermine our Nation’s enviable status as a global leader in scientific research and innovation.” Maine isn’t directly involved in the lawsuit, but three of the plaintiffs are associations that represent University of Maine System schools.

At UMaine, the Department of Energy is supporting millions of dollars in research projects, like the development of advanced sensors capable of enduring high temperatures and harsh environments.

“The University of Maine has eight current multi-year awards from the U.S. Department of Energy (DOE), reflecting a $26.3 million federal investment in cutting-edge research and innovation at the state’s only R1 institution to benefit students’ career preparation, our state’s workforce and economy, and the nation’s energy production and security,” spokesperson Samantha Warren said in an email.

Most of that money has already been paid to the state, however, and is not in jeopardy. To date, Warren said, UMaine has been paid $17.3 million in federal funding for those awards, including $4.5 million in indirect costs. That means the university is still expecting to receive $9 million through the agency, $1.2 million of which would support indirect costs.

Indirect costs, also known as facilities and administrative costs, cover research infrastructure and operating expenses that the university provides to support the research, like laboratories and maintenance staff, according to the American Association of Universities.

Universities typically negotiate with the federal government to decide how much of their grant money can go toward indirect costs. The national average is 25% to 33%, although it varies by institution.

The University of Maine’s is 47.7%, while fellow New England universities have higher rates, like the University of New Hampshire (53.5%) and the University of Massachusetts Amherst (61.5%).

The Department of Energy said it will do away with those negotiated rates for all future awards and set them automatically to 15%. As for already awarded money: “Consistent with this memorandum, the Department is undertaking action to terminate all grant awards to (colleges and universities) that do not conform with this updated policy,” the notice said.

Warren said UMaine has received communication from the agency about at least one of its grants but has not taken action because of the ongoing legal situation.

Last week, Judge Allison Burroughs granted a temporary restraining order on behalf of the universities, which temporarily prevents the agency from implementing the rate cap policy in any form. She also ordered the department to notify all of its grant recipients of the order within 24 hours.

The agency had until Tuesday to issue a reply. According to court records, that had not been filed by Tuesday afternoon.

The Department of Energy’s directive echoes a National Institutes of Health policy announced in February that was quickly met with a lawsuit from 22 states. That action was temporarily halted by a federal judge. Other federal agency cuts, like a freeze on U.S. Department of Agriculture funding for Maine education, have also been halted by judges.