Attorney General Peter F. Neronha, along with 22 other attorneys general, has filed a lawsuit against the Trump Administration, the Department of Health and Human Services, and the National Institutes of Health (NIH). The lawsuit challenges the decision to cut funds supporting medical and public health research at universities and research institutions nationwide.
The coalition opposes the administration's attempt to reduce "indirect cost" reimbursements for research institutions. These reimbursements cover essential expenses like lab facilities, faculty, infrastructure, and utilities necessary for biomedical research. Attorney General Neronha emphasized the potential impact on Rhode Island institutions such as URI and Brown University. He stated that reduced funding could threaten future research on diseases affecting many Americans and result in job losses.
Neronha expressed concern about the administration's actions: “This Administration seems hell-bent on upending advancement in this country, and in this instance, that means defunding major medical research initiatives." He highlighted how these cuts could affect research into heart disease, Alzheimer’s, and other conditions.
Indirect cost reimbursements are negotiated based on each institution's needs through a regulated process. The Trump Administration's plan disregards these agreements, posing risks to public health advancements. The coalition seeks legal action to prevent what they consider reckless conduct.
On February 7, NIH announced a reduction of indirect cost rates to 15%, effective February 10. This sudden change left universities unprepared for budget gaps that could halt clinical trials and disrupt programs. The coalition argues this violates the Administrative Procedure Act and a congressional directive from Trump's first term prohibiting indiscriminate changes to reimbursements.
NIH is a primary source of federal funding for U.S. medical research. Its grants have led to significant scientific breakthroughs and Nobel Prize-winning work. Most NIH-funded research occurs outside federal institutions at universities like those in Rhode Island.
In Rhode Island, URI testified that maintaining critical functions would require contingency funds due to reduced reimbursements. Brown University reported potential project shutdowns affecting dementia, Alzheimer’s disease, heart disease, and diabetes prevention studies.
The lawsuit is co-led by attorneys general from Massachusetts, Illinois, and Michigan. Other states involved include Arizona, California, Connecticut, Colorado, Delaware, Hawaii, Maine, Maryland, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon,Vermont,Wisconsin,and Washington.