Attorneys General File Legal Challenge to Dramatic NIH Funding Cuts for Universities and Research Institutions
Chicago – Attorney General Kwame Raoul co-led a coalition of 22 attorneys general today to stop the Trump administration from unlawfully cutting Department of Health and Human Services and National Institutes of Health (NIH) funding that supports cutting-edge medical and public health research at universities and research institutions across the country.
The coalition filed a lawsuit challenging the Trump administration’s attempt to unilaterally cut “indirect cost” reimbursements at every research institution throughout the country. These reimbursements cover necessary expenses to facilitate biomedical research, including lab, faculty, safety protocol, data processing and utility costs.
“The funds the Trump administration is proposing to cut support lifesaving medical research,” Raoul said. “The impact of these illegal cuts would be enormous in Illinois, harming the ability of our universities and research institutions to achieve breakthrough discoveries that make life better for us all. This recklessness will hurt public health and put America’s status as a world-leading innovator at serious risk.”
On Friday, Feb. 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. 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. Raoul and the attorneys general argue that the Trump administration’s attempt to toss those agreements aside put public health and medical advancements at risk. The coalition is seeking a court order barring NIH from implementing the new policy.
Raoul and the attorneys general assert that the move violates federal law, including a directive Congress passed during President Trump’s first term to fend off an earlier proposal he made to drastically cut research reimbursements. That statutory language specifically prohibits the NIH from requiring categorial and indiscriminate changes to indirect cost reimbursements.
The NIH called for this cut to be effective the next business day, Monday, Feb. 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 impact of the cuts would be extensive in Illinois, as nearly every state university receives NIH funding for clinical trials and research. It would cost the University of Illinois System alone approximately $67 million annually. It would also mean significant cuts to other public universities, including $4.5 million to the Southern Illinois University System.
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 treatments 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.
The affected universities in Illinois work on cutting-edge medical research that the public relies on, including developing new treatments for cancer, Alzheimer’s disease, Parkinson’s disease and diabetes.
Attorney General Raoul is co-leading the lawsuit with Massachusetts Attorney General Andrea Campbell and Michigan Attorney General Dana Nessel. Joining them in filing the complaint are the attorneys general of Arizona, California, Connecticut, Colorado, Delaware, Hawaii, Maine, Maryland, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington and Wisconsin.