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16 States Sue to Block Trump Administration’s NSF Funding Cuts

State attorneys general argue the rules breach the Administrative Procedure Act, risking nearly $1.4 billion in science funding

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United States National Science Foundation logo and U.S. flag are seen in this illustration taken April 23, 2025. REUTERS/Dado Ruvic/Illustration
The National Science Foundation headquarters in Washington, D.C. The agency is at the center of a new lawsuit by 16 state attorneys general over cuts to STEM diversity programs and research funding.
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Overview

  • The lawsuit filed in Manhattan federal court challenges NSF directives that cap indirect research costs at 15% and eliminate diversity and misinformation grants.
  • Since April, NSF has canceled 1,753 grants worth nearly $1.4 billion across STEM fields, halting projects from DEIA initiatives to climate studies.
  • The White House’s fiscal 2026 proposal seeks a 55% reduction in NSF’s $8.8 billion budget alongside a sweeping agency restructuring.
  • Plaintiffs contend the policy shifts violate federal law and override Congress’s mandate to support diversity in science, technology, engineering and math.
  • Former NSF Director Sethuraman Panchanathan resigned 16 months before his term ended as the agency navigates policy upheaval and mounting legal challenges.