States sue to block new NIH funding policy–court puts it on hold

The National Institutes of Health (NIH) recently announced a significant change to its policy regarding indirect costs associated with research funding, setting a flat rate of 15% for all campuses, retroactively affecting existing grants. This decision has prompted a coalition of 22 states to file a lawsuit against the NIH, claiming the policy violates established laws and a congressional budget rider aimed at protecting indirect cost rates. The states argue that the abrupt change could lead to severe budget shortfalls for research universities, potentially hindering biomedical research and delaying treatment availability for citizens. A federal judge granted an injunction to temporarily halt the implementation of the new policy, initially applying to the states involved in the lawsuit but later extended nationwide due to a similar suit from medical organizations. The states contend that the new policy is arbitrary and capricious, lacking a solid foundation for the 15% rate and disregarding the reliance on previously negotiated rates. They seek to formally declare the policy a violation of the Administrative Procedures Act and prevent similar future policies. The NIH's decision has reignited concerns over funding for critical research infrastructure, echoing past attempts to limit indirect costs during the Trump administration.

- 22 states have sued the NIH to block a new funding policy that sets indirect costs at 15%.

- A federal judge has issued an injunction halting the policy's implementation.

- The lawsuit claims the policy violates established laws and could severely impact research funding.

- The states argue the new rate is arbitrary and lacks justification.

- The NIH's decision has raised concerns about the future of biomedical research funding.