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New York AG Letitia James Leads Multi-State Lawsuit Against Trump Administration Over NIH Funding Cuts

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Published on February 10, 2025
New York AG Letitia James Leads Multi-State Lawsuit Against Trump Administration Over NIH Funding CutsSource: Google Street View

In a move that's ruffling feathers in the scientific community, New York Attorney General Letitia James, alongside a coalition of 21 attorneys general, have taken legal action against the Trump administration for what they are calling an illegal maneuver to cut funding integral to medical and scientific research. The group filed a lawsuit over the National Institutes of Health's (NIH) sudden policy shift that caps "indirect cost" reimbursements to a mere 15%, which universities and research institutions depend on to cover a range of operational expenses such as facilities and equipment.

The policy, which was put forth on February 7 and set to be effective just three days later, blindsided institutions with drastic funding reductions, a move that could lead to halts in critical research, job cuts, and shuttering of labs. It runs up against a congressional mandate from 2018, wherein NIH was prohibited from making such unilateral alterations to indirect cost rates without proper approval, and this latest policy appears to have ignored that stipulation. Additionally, shifting these rates retroactively seems to exceed NIH's authority and the process completely sidestepped the norm of providing notice or allowing public commentary, which paints the Trump administration's hurried decision-making in a contentious light.

James described the policy as "unlawful and reckless," asserting that it would jeopardize essential studies on diseases ranging from cancer to Alzheimer's, according to a statement released by her office. The collective action of these attorneys general stands as a stark defense of the scientific research ecosystem, which has historically led to breakthroughs and Nobel Prize-winning work, much of it funded by those NIH grants now at risk.

With NIH acting as a cornerstone for federal medical research funding in the U.S., the ripple effects of such policy cuts could be devastating, particularly in New York where around $5 billion in NIH grants currently support a wide array of projects. The estimated loss for New York institutions reaches a staggering $850 million, putting significant advancements and research continuity in jeopardy – the State University of New York (SUNY) system alone might face a $78 million shortfall, which could bring groundbreaking work to an untimely end. The legal battle is being spearheaded by Special Counsel Molly Thomas-Jensen and Special Counsel for Federal Initiatives Rabia Muqaddam, under the supervision of First Deputy Attorney General Jennifer Levy, as the coalition seeks to stop this funding cap from being enforced.

It's a sizable legal clash that includes attorneys general from Arizona to Wisconsin, comprising a formidable front against a policy that many view as a stark politicization of science, which carries the potential to decimate progress and discovery in the medical field at a time when it is needed most.