Attorney General Andrea Joy Campbell of Massachusetts, alongside a coalition of 21 other state attorneys general, has filed a lawsuit against the Trump Administration, the Department of Health and Human Services, and the National Institutes of Health (NIH) for the recent cuts to medical and public health research funding. In a move that blindsided academic and research institutions across the United States, the administration has made a significant reduction in "indirect cost" reimbursements, threatening the continuance of life-saving medical research and public health advancements. The legal action aims to stop what the coalition views as an illegal and detrimental decision. According to a report by Mass.gov, the lawsuit was filed in the U.S. District Court for Massachusetts.
The sudden policy change, which was announced by the NIH last Friday, set the indirect cost rates to a uniform 15%, reduced from the higher percentages previously allocated based on individual institutions' negotiations with the federal government. The coalition alleges that executing such a cut on the following business day, with no notice, not only compromised research programs but also strained the financial stability of institutions. "Massachusetts is the medical research capital of the country. We are the proud home of nation-leading universities and research institutions that save lives, create jobs, and help secure a better future," AG Campbell asserted in a statement obtained by Mass.gov. She further emphasized the significance of the state's economy and competitiveness, which are now at risk.
The lawsuit is built on the grounds that the action taken by the Trump Administration violates the Administrative Procedure Act, which includes a congressional directive intended to prevent abrupt and significant funding cuts. This statute remains effective and was originally introduced during Trump's first term to counter similar proposals pushed by his administration. The attorneys general are seeking a court order that bars the enactment of this abrupt funding reduction. "We will not allow the Trump Administration to unlawfully undermine our economy, hamstring our competitiveness, or play politics with our public health," Campbell told Mass.gov.
As the main source of federal funding for medical research, NIH's contributions have spurred countless scientific breakthroughs and have supported scientists in achieving Nobel Prizes. The federal grants are a lifeline for both public and private universities, which conducted 5,783 research projects in Massachusetts alone, funded with approximately $3.46 billion in the Fiscal Year 2024. Among the institutions impacted are the University of Massachusetts Amherst—involved in critical research for healthy aging and dementia care—and the Broad Institute of MIT and Harvard, among others. The aggressive and sudden slashing of the funding rates could trigger layoffs, halts in clinical trials, and shut downs of laboratories, which would significantly damage the state's status as a hub for medical research and innovation.
Supporting AG Campbell in leading this lawsuit are the attorneys general from Illinois and Michigan. They are joined by colleagues from Arizona, California, Connecticut, Colorado, Delaware, Hawaii, Maine, Maryland, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin, forming a robust front against a controversial decision that unsettles the fabric of the nation's medical research economy.
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