Attorney General Kathy Jennings and 21 other attorneys general today sued 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, including those in Delaware such as the University of Delaware and Delaware State University. 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.

“NIH funding ensures that American biomedical research is the envy of the world,” said Attorney General Jennings. “The fruits of that research are what give us a glimmer of hope when a loved one is sick and conventional treatments fail. These illegal and indiscriminate cuts would be devastating not only to the work and workforce of Delaware’s research facilities but to the advancement of medical science and to the fight against disease.”

Most NIH-funded research occurs outside of federal government institutions such as both public and private universities and colleges. NIH’s reduction of University of Delaware’s IDC rates will result in a loss of approximately $12 million that it needs to support its research programs. The loss of these funds will immediately impact and undermine the University of Delaware’s ability to support critical research, meet essential obligations associated with maintaining its research facilities, and support clinical trials in Delaware. Delaware State University stands to lose $1.4 million from the NIH cut, which could impact biomedical research programs into Alzheimer’s and Parkinson’s disease, breast cancer, and AI-assisted analysis of medical imaging.

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.

On Friday, the NIH announced it would abruptly slash indirect cost rates to an across-the-board 15% 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 — today — 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 attorneys general 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 has led to innumerable scientific breakthroughs, including the discovery of and 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.

Joining Delaware are Arizona, California, Connecticut, Colorado, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington and Wisconsin.

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