A legal battle over NIH funding cuts that could derail critical medical research for Alzheimer’s, cancer, and heart disease escalated in federal court Friday. U.S. District Judge Angel Kelley heard arguments on whether to block the Trump-era policy slashing reimbursements for administrative costs tied to $35 billion in annual biomedical grants. Advocates warn the cuts would shutter clinical trials, delay breakthrough treatments, and eliminate tens of thousands of jobs.
The policy targets “indirect costs” like lab safety protocols, electricity for specialized equipment, and ethics compliance staff – expenses universities say are nonnegotiable for cutting-edge research. NIH currently negotiates these rates case by case, with some grants allocating over 50%. The proposal would impose a universal 15% cap, draining $4 billion annually from institutions.
“The care, treatments, and medical breakthroughs provided to patients and families are not ‘overhead,’” wrote Johns Hopkins leaders Ron Daniels and Theodore DeWeese.
Opponents argue the cuts violate bipartisan 2020 legislation prohibiting such changes. Over 22 states and major research groups filed suits, citing immediate harms:
- University of Wisconsin-Madison may terminate clinical trials for patients with rare diseases
- Johns Hopkins could scale back 600+ active NIH-funded studies
- A Detroit research facility projected to create 500 jobs faces cancellation
The Trump administration claims institutions failed to prove “irreparable injury,” asserting NIH’s right to adjust post-award grant terms. However, MIT economist Dr. Alicia Ramirez warns abrupt cuts could destabilize decades of peer-reviewed research pipelines. “These grants employ researchers for 5-10 year studies. Slashing budgets midstream isn’t fiscal prudence – it’s scientific sabotage,” she told reporters.
With over 60,000 NIH grants fueling everything from AI-driven drug discovery to pediatric oncology trials, stakeholders urge Judge Kelley to preserve funding until Congress settles the dispute. A ruling is expected within 14 days.