The document is a legal complaint filed by a coalition of over twenty states, led by the Commonwealth of Massachusetts, against the National Institutes of Health (NIH), its Acting Director, the U.S. Department of Health and Human Services (HHS), and HHS’s Acting Secretary. The plaintiffs challenge a recent NIH directive that imposes a flat 15% cap on the reimbursement rate for indirect costs on NIH-funded research grants, replacing the previously negotiated, often higher, institution-specific rates. The states argue that this new policy—applied retroactively and without individualized review—violates federal law, regulations, and congressional appropriations riders prohibiting such unilateral changes.
Central to the states' argument is the critical role of indirect cost funding, which supports vital research infrastructure and administrative functions. The complaint outlines the significant negative impacts the policy will have on universities and research centers, including financial shortfalls, layoffs, suspended projects, and potential program closures, thereby threatening public health research and scientific advancement. The plaintiffs assert that the NIH’s rate reduction is arbitrary and capricious, lacks proper justification, and was enacted without the legally required notice-and-comment period, contravening the Administrative Procedure Act and exceeding NIH’s statutory authority.
The complaint details several legal grounds for relief, citing violations of procedural and substantive standards, and emphasizes that the policy change undermines existing grant agreements upon which institutions have relied. The states seek judicial intervention to set aside the directive, prevent its implementation, and preserve established funding mechanisms. Collectively, the document underscores multi-state opposition to the NIH’s action and highlights the broader risks posed to research infrastructure and public welfare if the policy is allowed to proceed.
