New York Attorney General Letitia James joined a coalition of 21 other attorneys general in suing the Trump administration, the Department of Health and Human Services, and the National Institutes of Health (NIH) for attempting to illegally slash grant funding to universities and research institutions across the country. Attorney General James and the coalition are challenging the NIH’s new policy that caps “indirect cost” reimbursements at 15% for every research institution in the country. These indirect cost reimbursements cover all expenses that facilitate biomedical research, including laboratory space, equipment, faculty, infrastructure, and utility costs. Limiting these reimbursements will threaten lifesaving medical research at institutions across the country and could lead to layoffs, disruptions to clinical trials, and even laboratory closures. With today’s lawsuit, Attorney General James and the coalition seek to prevent the policy from taking effect.
“This is yet another unlawful and reckless attempt by the Trump administration to undermine vital public institutions and harm the people who rely on them,” said Attorney General James. “The administration’s decision to cap NIH reimbursement rates could force scientists to shutter their lifesaving research on cancer, diabetes, Alzheimer’s, addiction, infectious diseases, and more. My office will not stand idly by as this administration once again puts politics over science and endangers public health. We are suing to prevent this harmful policy from taking effect.”
On February 7, NIH announced it would abruptly slash indirect cost rates for research grants to 15?ross the board, significantly less than the cost required to perform cutting-edge medical research. The NIH also announced that cuts would go into effect the 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 life-saving and life-extending clinical trials, disruption of research programs, layoffs, and laboratory closures.
