A federal judge has issued a temporary pause across all states on the new NIH order that caps “indirect costs” for research grants—a move designed to slash costs by $4 billion per year.
Judge Angel Kelley for the U.S. District Court in Boston ordered (PDF) the nationwide hold after several universities and research centers filed suit Feb. 10, claiming the NIH initiative “will devastate medical research at America’s universities.”
The broad-reaching order follows Kelley’s temporary restraining order against the NIH action in 22 states that are also suing. In that lawsuit, state attorneys general argue the NIH change violates the Administrative Procedure Act and is therefore “unlawful."
Both lawsuits have hearings slated for Feb. 21.
The NIH initiative in question was rolled out late last week under President Donald Trump’s administration and is designed to cut billions from grants tied to biomedical research.
With a yearly budget of nearly $48 billion, the NIH is the world’s largest public funder of biomedical research. The agency's grants include money for indirect costs such as buildings, equipment and maintenance expenses, among others.
The new directive caps the indirect cost rate at 15% on all NIH grants, a move that will not be applied retroactively. This compares with a historical average of 28% to 29% for the agency, according to the directive.