A U.S. judge has temporarily blocked President Donald Trump’s administration from implementing sharp cuts to federal grant funding for universities, medical centers, and other research institutions. The decision, made by U.S. District Judge Angel Kelley in response to a lawsuit filed by Democratic attorneys general from 22 states, was seen as a victory by those who challenged the cuts. The lawsuit argued that the National Institutes of Health (NIH) exceeded its authority and violated federal law in reducing the reimbursement rate for research institution costs not directly related to project goals.
The Trump administration had planned to cap the rate it would reimburse for indirect costs at 15%, down from an average of about 27% to 28%. This policy was part of Trump’s broader efforts to reduce federal spending and restructure aspects of the U.S. government. The NIH defended the change, stating it would save the government $4 billion annually, with some of the most elite universities with large endowments like Harvard, Yale, and Johns Hopkins being affected.
The lawsuit argued that the NIH’s actions would lead to layoffs, research disruptions, and laboratory closures, and violated language in funding legislation passed by Congress since 2018. The lawsuit also accused the NIH of making the cuts retroactive to existing grants without proper authorization. Harvard University expressed concern over the cuts, stating they would impact research activity at Harvard and other research universities. Other medical trade groups also filed a separate lawsuit seeking to block the NIH’s cuts.
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