Massachusetts District Court Temporarily Blocks NIH Research Funding Cut

A Massachusetts federal judge has issued a temporary restraining order preventing the implementation and enforcement of the National Institutes of Health's (NIH) research funding cut (NOT-OD-25-086) (the Rate Change Notice). The Rate Change Notice is intended to cap the indirect cost reimbursement rate for federally funded research at 15 percent for all grant recipients, replacing the indirect cost rates individually negotiated by research institutions (which typically range from 25 percent to 70 percent). You can read more about the Rate Change Notice online.

In response to the Rate Change Notice, 22 states filed a Complaint for Declaratory and Injunctive Relief to prevent the implementation of the Rate Change Notice, arguing that its effects on scientific research, public health and the economies of the states filing suit would be immediate and devastating.

Hon. Angel Kelley of the U.S. District Court for the District of Massachusetts granted the temporary restraining order 1) enjoining NIH from taking any steps to implement, apply or enforce the Rate Change Notice and 2) requiring NIH to file status reports within 24 hours and at biweekly intervals confirming the regular and ongoing disbursement of federal funds.

Judge Kelley's order prohibits only enforcement of the Rate Change Notice in the 22 states that filed suit, which are Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington and Wisconsin.

Two additional suits seeking to block the Rate Change Notice have been filed by higher education associations and universities in Massachusetts, challenging the Rate Change Notice under the Administrative Procedure Act.

Holland & Knight attorneys familiar with the congressional and political landscape surrounding this issue will continue to monitor these developments, including ongoing legal challenges.