Coalition of 22 Attorneys General Challenge NIH Funding Cuts for Universities and Research Institutions 

TRENTON – New Jersey Attorney General Matthew J. Platkin and 21 other attorneys general today sued the Trump Administration, the Department of Health and Human Services, and the National Institutes of Health (NIH) for unlawfully cutting funds that support cutting-edge medical and public health research at universities and research institutions across the country.

The coalition is challenging the Trump Administration’s attempt to unilaterally cut “indirect cost” reimbursements at every research institution throughout the country. These reimbursements cover expenses to facilitate biomedical research, such as lab, faculty, infrastructure, and utility costs. Without them, the lifesaving and life-changing medical research in which the United States has long been a leader could be compromised.

Indirect cost reimbursements are based on each institution’s unique needs, negotiated with the federal government through a carefully regulated process, and then memorialized in an executed agreement. The Trump Administration purports to toss those agreements aside, putting public health and medical advancements at risk. The coalition’s lawsuit seeks to prevent that reckless and illegal conduct.

The lawsuit was filed today in U.S. District Court for Massachusetts and can be found here.

“The Trump Administration’s attack on public health research funding is a direct attack on our State, which has long led the nation in medical and health innovations that have saved countless lives across our country,” said Attorney General Platkin. “Our universities, labs, and research institutions have fought COVID-19, cancer, and many more issues of public interest, but now they have to fight the cruelty and shortsightedness of President Trump and his political appointees. We will fight this reckless and illegal action in court until this critical funding is restored.”

On Friday, February 7, the NIH announced it would abruptly slash indirect cost rates to an across-the-board 15% rate, which is significantly less than the cost required to perform cutting edge medical research. The NIH purported to make this cut effective the very next business day, Monday, February 10, giving universities and institutions no time to plan for the enormous budget gaps they are now facing. Without immediate relief, this action could result in the suspension of lifesaving and life-extending clinical trials, disruption of research programs, layoffs, and laboratory closures.

The coalition argues that this action violates the Administrative Procedure Act, including a directive Congress passed during President Trump’s first term to fend off his earlier proposal to drastically cut research reimbursements. That statutory language, still in effect, prohibits the NIH from requiring categorial and indiscriminate changes to indirect cost reimbursements. The coalition is seeking a court order barring the Trump Administration and NIH from implementing the action.

The NIH is the primary source of federal funding for medical research in the United States. Medical research funding by NIH grants has led to innumerable scientific breakthroughs, including the discovery of treatment for cancers of all types, the first sequencing of DNA, and the development of the MRI. Additionally, dozens of NIH-supported scientists have earned Nobel Prizes for their groundbreaking scientific work.

Most NIH-funded research occurs outside of federal government institutions at places such as both public and private universities and colleges. In New Jersey, this includes Rutgers University, Rowan University, The College of New Jersey, Kean University, Montclair State University, the New Jersey Institute of Technology, Ramapo College, Stockton University, Princeton University, The Stevens Institute of Technology, Seton Hall University, and Fairleigh Dickinson University.

Joining New Jersey in this lawsuit are the states of Arizona, California, Connecticut, Colorado, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.

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