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2mo ago

Federal Judge Blocks NIH Grant Policy Overhaul on Indirect Costs

The ruling halts a Trump administration policy capping indirect research costs at 15%, citing potential harm to clinical trials and research institutions.

The exterior of John Jospeh Moakley U.S. Courthouse, where Alec Burlakoff, former vice president of sales at Insys, appears in federal court after reaching a plea deal with prosecutors, in Boston, Massachusetts, U.S., November 28, 2018.
Jayanta Bhattacharya testifies during a US Senate Committee on Health, Education, Labor, and Pensions hearing on his nomination to be Director of the National Institutes of Health (NIH), on Capitol Hill in Washington DC, on March 5, 2025. (Photo by Jim WATSON / AFP) (Photo by JIM WATSON/AFP via Getty Images)
U.S. President Donald Trump holds a joint press conference with Japanese Prime Minister Shigeru Ishiba in the East Room at the White House in Washington, U.S., February 7, 2025.
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Overview

  • U.S. District Judge Angel Kelley issued a nationwide preliminary injunction against the NIH's plan to cap indirect costs for research grants at 15%.
  • The policy, announced in February 2025, would have replaced negotiated rates, typically ranging between 30% and 70%, with a flat rate, reducing funding by $4 billion annually.
  • Plaintiffs, including 22 state attorneys general, universities, and medical associations, argued the policy violated federal law and threatened ongoing research and clinical trials.
  • The court found the NIH failed to follow proper administrative procedures, including required notice-and-comment rulemaking, rendering the policy likely unlawful.
  • The decision preserves current funding structures while legal challenges proceed, ensuring continued support for biomedical research and patient care.