U.S. Judge Blocks NIH Grant Funding Cuts Amid Ongoing Litigation

The lawsuit was brought by 22 state attorneys general, medical associations, and universities, including the Association of American Medical Colleges (AAMC), the American Association of Colleges of Pharmacy, the Association of Schools and Programs of Public Health, and multiple hospital groups. These organizations argued that the cuts were unlawful and would result in widespread layoffs, lab closures, and disruptions to medical research and clinical trials.

The NIH policy change, announced on February 7, would have capped indirect cost reimbursements at 15%, down from an average of 27-28%. The administration said the move would save $4 billion annually and pointed to institutions like Harvard, Yale, and Johns Hopkins, which reportedly charged more than 60% for indirect costs despite having multibillion-dollar endowments. However, research institutions argued that the funding reductions would have removed at least $6.5 billion in previously committed support for research.

Judge Kelley ruled that NIH failed to comply with legal and regulatory requirements, citing provisions in funding legislation passed since 2018 that restrict across-the-board reductions in NIH grant reimbursements. The court also noted that the administration attempted to implement the cuts over a weekend without regard for ongoing research.

The ruling follows a temporary restraining order issued on February 10, the day the cuts were set to take effect, which was later extended. The administration is expected to appeal the decision, while NIH has not provided further comment.