Legal Action

A coalition of states sued the Trump-Vance administration challenging federal funding cuts to facilities, equipment, personnel, and other indirect costs associated with medical and public health research. Defendants issued Notice Number NOT-OD-25-068 and announced it would immediately cut funding for indirect costs to an across-the-board rate of 15%. The plaintiffs in this case argue that National Institute of Health (NIH) violated the Administrative Procedure Act because the NIH Notice is arbitrary and capricious and not in accordance with law, and because NIH acted outside the agency’s authority and without observance of the procedure required by law.

On Apr. 4, 2025, a district court entered an order issuing a permanent injunction in this case. An appeal ensued, culminating in the circuit court’s order affirming the lower court’s permanent injunction.