Democratic AGs Block NIH Grant Cuts

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  • A coalition of 22 Democratic AGs obtained a preliminary injunction blocking the implementation of the Supplemental Guidance to the 2024 NIH Grants Policy Statement: Indirect Cost Rates (Rate Change Notice), which would have capped indirect cost rates for NIH grants at 15 percent, which would limit funding for research institutions’ operational, administrative, and overhead expenses.
  • In their complaint, the AGs assert, among other things, that the Rate Change Notice is arbitrary and capricious, violates Congress’s directives in NIH appropriation acts, and contradicts HHS regulations that prohibit categorical and indiscriminate changes to indirect cost rates.
  • In granting the preliminary injunction—applicable to this lawsuit and two other legal challenges—the U.S. District Court found that the states and other plaintiffs were likely to succeed on the merits and had demonstrated irreparable harm.
  • We previously covered the court’s earlier order granting the AGs’ request for a temporary restraining order in this case.
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