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AG Platkin Leads Multistate Lawsuit Against NIH Funding Cuts for Medical Research
Coalition of 22 states fights Trump Administration’s abrupt slash to indirect cost reimbursements, threatening life-saving projects.
TRENTON – New Jersey Attorney General Matthew J. Platkin joined a coalition of 22 attorneys general to sue the Trump Administration, the Department of Health and Human Services (HHS), and the National Institutes of Health (NIH) for unlawfully slashing vital research funding that supports biomedical and public health innovation across the country. The coalition argues that sudden cuts to “indirect cost” reimbursements imperil groundbreaking work at both public and private universities, as well as research institutions, endangering life-saving projects and scientific advancements.
Background on Indirect Cost Reimbursements
Indirect cost (IDC) reimbursements cover essential overhead expenses crucial to conducting research—such as lab maintenance, faculty and staff salaries, infrastructure, and utilities. Institutions negotiate these rates with the federal government via a regulated process, culminating in legally binding agreements.
On February 7, the NIH abruptly announced it would cap indirect cost rates for all grant recipients at an across-the-board 15%, substantially lower than the typical negotiated percentages. The change took effect on February 10, leaving universities no time to adjust budgets or secure alternative funding.
“The Trump Administration’s attack on public health research funding is a direct attack on our State, which has long led the nation in medical and health innovations that have saved countless lives across our country,” said Attorney General Platkin. “Our universities, labs, and research institutions have fought COVID-19, cancer, and many more issues of public interest, but now they have to fight the cruelty and shortsightedness of President Trump and his political appointees. We will fight this reckless and illegal action in court until this critical funding is restored.”
The attorneys general warn that if NIH imposes these cuts:
- Clinical trials in progress could be suspended.
- Research programs may have to drastically curtail operations.
- Laboratory facilities risk closure.
- Layoffs among researchers and support staff may escalate.
Numerous U.S. breakthroughs—cancer treatments, DNA sequencing, and MRI technology—trace back to NIH-supported research. Attorney General Platkin notes that across New Jersey, institutions such as Rutgers University, Rowan University, and Princeton University depend on these reimbursements to remain competitive in scientific exploration.
Legal Arguments
The coalition’s lawsuit, filed in federal court, contends that the unilateral cut to indirect cost reimbursements violates:
- The Administrative Procedure Act (APA) imposes sudden, sweeping changes without required due process or notice.
- Congressional directives passed during President Trump’s first term to guard against deep IDC funding reductions.
The attorneys general seek an injunction blocking the new policy, as well as a declaratory judgment affirming the illegality of NIH’s hasty across-the-board approach.
States Involved
Attorney General Platkin is joined by attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.
For further updates, consult the New Jersey Attorney General’s Office website or watch for official announcements. The coalition underscores the fundamental role of robust NIH-backed research in safeguarding public health and driving transformative medical innovations.
