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Supreme Court, 5-4, Lets NIH Cancel $783 Million in DEI-Linked Grants

The interim order preserves the lower court’s vacatur of NIH guidance, signaling that challenges to payment obligations likely belong in the Court of Federal Claims.

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President Donald Trump, from left, speaks as Cody Campbell, WWE CCO Triple H and Health and Human Services Secretary Robert F. Kennedy Jr. listen during an event for the signing of an executive order restarting the Presidential Fitness Test in public schools, Thursday, July 31, 2025, in the Roosevelt Room of the White House in Washington. (AP Photo/Jacquelyn Martin)
General view shows The United States Supreme Court, in Washington, U.S., February 8, 2024. REUTERS/Amanda Andrade-Rhoades/File Photo
Supreme Court Justice Ketanji Brown Jackson speaks to the 2025 Supreme Court Fellows Program, Feb. 13, 2025, at the Library of Congress in Washington.

Overview

  • The unsigned order lifts an injunction requiring continued payments, allowing NIH to proceed with terminations totaling about $783 million.
  • Justice Amy Coney Barrett cast the decisive vote, agreeing to permit cancellations while keeping the district court’s rejection of NIH guidance in force.
  • The majority indicated challenges to specific grant payments should be brought in the U.S. Court of Federal Claims rather than in district court.
  • Chief Justice John Roberts joined Justices Sotomayor, Kagan and Jackson in dissent, and separate writings from Justices Gorsuch and Jackson highlighted sharp divisions.
  • The underlying suits by 16 states and public‑health groups continue after a June ruling that deemed the mass cancellations arbitrary and discriminatory.