Federal Judge Temporarily Blocks NIH’s Drastic Cut to Research Funding After Universities and States Sue

The National Institutes of Health (NIH) announced a directive on Friday to cap "indirect" cost funding for university research at 15%, down from an average of 27-28%12.

This cut would significantly impact research institutions, with some universities facing potential annual losses exceeding $80 million2.

Two separate lawsuits were filed against the NIH and Department of Health and Human Services (HHS) on Monday:

One by the University of Chicago and 15 other plaintiffs, including several educational associations1.
Another by 22 states, including Massachusetts, California, Maryland, and New York3.

Massachusetts District Court Judge Angel Kelley issued a temporary restraining order (TRO) on Monday night, blocking the directive within the 22 states that were plaintiffs in the suit14.

The lawsuits argue that the NIH's actions violate federal law, including an appropriations rider prohibiting changes to indirect cost reimbursement, and that the agency didn't follow proper rulemaking procedures34.

Universities claim the cuts would lead to layoffs, suspension of clinical trials, disruption of ongoing research programs, and laboratory closures3.

Some Republican lawmakers, including Senate Appropriations Chair Susan Collins, have also expressed concerns about the "poorly conceived directive"3.

The judge scheduled a hearing for February 21, 2025, to further address the issue4.

Sources:

1. https://chicagomaroon.com/45412/news/flagrantly-unlawful-uchicago-sues-nih-over-funding-cuts/

2. https://cornellsun.com/2025/02/11/cornell-11-other-universities-sue-nih-after-multi-million-dollar-grant-cuts-announced/

3. https://www.governing.com/policy/judge-halts-nih-research-cuts-temporarily-after-22-states-sue

4. https://www.insidehighered.com/news/government/science-research-policy/2025/02/10/federal-judge-temporarily-blocks-nih-rate-cut