Great Lakes Wire

Michigan Attorney General Dana Nessel has initiated a lawsuit against the Trump Administration, the Department of Health and Human Services, and the National Institutes of Health (NIH) alongside 22 other attorneys general. The lawsuit challenges the administration's decision to reduce funding for medical and public health research at universities and research institutions across the nation.

The coalition disputes the administration's attempt to cut "indirect cost" reimbursements, which are essential for supporting biomedical research expenses such as laboratory, faculty, infrastructure, and utility costs. The concern is that this reduction could compromise significant medical research in which the United States is a global leader.

According to Attorney General Nessel, these indirect cost reimbursements are negotiated based on each institution's unique needs and are formalized in agreements with the federal government. The Trump Administration's actions threaten to nullify these agreements, potentially hindering public health advancements.

"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 February 7, NIH announced an abrupt reduction in indirect cost rates to a flat 15%, effective immediately on February 10. This decision left universities unprepared for resulting budget shortfalls. Without prompt intervention, it could halt clinical trials, disrupt ongoing research programs, cause layoffs, and force laboratory closures.

The coalition argues that this move breaches the Administrative Procedure Act. It cites congressional directives during Trump's first term that prevented drastic reimbursement cuts from being enforced by NIH. A court order is sought to prevent these changes from taking effect.

NIH is a key source of federal funding for U.S. medical research, leading to numerous scientific breakthroughs like cancer treatments, DNA sequencing, and MRI development. Most NIH-funded projects occur outside federal institutions at places like universities.

In Michigan alone, over $200 million in funds that support projects at University of Michigan, Michigan State University, and Wayne State University face potential cuts due to this action.

Massachusetts Attorney General Maura Healey co-leads this lawsuit along with Illinois' Kwame Raoul and Michigan's Dana Nessel. Other states participating include Arizona, California, Connecticut, Colorado, Delaware, Hawaii, Maine Maryland Minnesota Nevada New Jersey New Mexico New York North Carolina Oregon Rhode Island Vermont Washington Wisconsin

The lawsuit was filed today in U.S District Court for Massachusetts.