Federal Judge Blocks NIH Grant Caps as HHS Appeals Ruling

Permanent Injunction on NIH Caps:
U.S. District Judge Angel Kelley issued a permanent injunction blocking a Trump administration policy to cap indirect costs for NIH grants at 15%, which would have significantly reduced funding for universities and research institutions5 9.

Federal Government Appeals:
The Department of Health and Human Services (HHS) plans to appeal the decision, prolonging the legal conflict over NIH grant policies5 9.

Impact on Research Institutions:
The proposed caps would have forced institutions to absorb additional costs and potentially hindered innovation in medical and scientific research7 8.

Legal Basis:
The plaintiffs argued that the cap violated federal laws, including the Administrative Procedure Act (APA), and was arbitrary and capricious8 9.

Related Grant Terminations:
The NIH is concurrently facing lawsuits over the abrupt termination of hundreds of research grants, particularly those related to controversial or politically sensitive topics such as diversity, equity, inclusion (DEI), transgender health, and vaccine hesitancy1 4 8.

State Attorneys General Involvement:
Sixteen state attorneys general have also filed lawsuits to restore NIH grants, claiming that terminations caused economic harm to universities and disrupted critical studies8.

Broader Administrative Actions:
Under the Trump administration, NIH faced significant restructuring, including workforce reductions and funding freezes, contributing to a volatile research environment2 7.

Potential Precedents:
This ruling may set legal precedents for future challenges to government funding policies, highlighting the balance between agency authority and statutory mandates4 6.