NEWS RELEASE
MICHIGAN DEPARTMENT OF ATTORNEY GENERAL
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LANSING – Michigan Attorney General Dana Nessel co-led 22 other attorneys general in today suing the Trump Administration, the Department of Health and Human Services, and the National Institutes of Health (NIH) for unlawfully cutting funds that support cutting-edge medical and public health research at universities and research institutions across the country.
The coalition is challenging the Trump Administration’s attempt to unilaterally cut “indirect cost” reimbursements at every research institution throughout the country. These reimbursements cover expenses to facilitate biomedical research, like lab, faculty, infrastructure, and utility costs. Without them, the lifesaving and life-changing medical research in which the United States has long been a leader, could be compromised.
Indirect cost reimbursements are based on each institution’s unique needs, negotiated with the federal government through a carefully regulated process, and then memorialized in an executed agreement. The Trump Administration purports to toss those agreements aside, putting public health and medical advancements at risk. The coalition’s lawsuit seeks to prevent that reckless and illegal conduct.
“This funding supports life saving research,” said Nessel. “These dangerous proposed cuts are indiscriminate and without purpose. They will cost jobs here in Michigan and will hamper tens of thousands of research projects – many of which are currently underway and focus on improving health outcomes and preventing death. I’m proud to lead this effort to restore this essential funding.”
On Feb. 7, the NIH announced it would abruptly slash indirect cost rates to an across-the-board 15 per cent rate, which is significantly less than the cost required to perform cutting edge medical research. The NIH purported to make this cut effective the very next business day, Monday, giving universities and institutions no time to plan for the enormous budget gaps they are now facing. Without immediate relief, this action could result in the suspension of lifesaving and life-extending clinical trials, disruption of research programs, layoffs, and laboratory closures.
The coalition argues that this action violates the Administrative Procedure Act, including a directive Congress passed during President Trump’s first term to fend off his earlier proposal to drastically cut research reimbursements. That statutory language, still in effect, prohibits the NIH from requiring categorial and indiscriminate changes to indirect cost reimbursements. The coalition is seeking a court order barring the Trump Administration and NIH from implementing the action.
The NIH is the primary source of federal funding for medical research in the United States. Medical research funding by NIH grants have led to innumerable scientific breakthroughs, including the discovery of treatment for cancers of all types, the first sequencing of DNA and the development of the MRI. Additionally, dozens of NIH-supported scientists have earned Nobel Prizes for their groundbreaking scientific work.
Most NIH-funding research occurs outside of federal government institutions such as both public and private universities and colleges. In Michigan, this includes over $200 million in funding cuts that support research projects at the University of Michigan, Michigan State University and Wayne State University.
This lawsuit is being co-led by the attorneys general of Massachusetts, Illinois, and Michigan. Joining this coalition are the attorneys general of Arizona, California, Connecticut, Colorado, Delaware, Hawaii, Maine, Maryland, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington and Wisconsin.
The lawsuit was filed today in the U.S. District Court for Massachusetts and can be found here (PDF).
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