In a memo released late on Friday, the National Institutes of Health (NIH) announced a new policy that would limit indirect-cost funding to 15 percent. Indirect costs are the overhead expenses that support a project but can't be directly tied to a specific project. These costs are often included in grant proposals as a request for funding.
The new 15 percent rate proposed by NIH is approximately half of the average rate previously offered, a move that has drawn sharp criticism from universities and research institutions across the country.
The impact of this policy change is already being felt. FAMU, for instance, stands to lose nearly $1 million in indirect costs on federal grants it receives from the NIH. The exact amount is $985,508, a significant blow to the university's research capabilities.
In response to the new policy, twenty-two states have taken legal action. They filed a lawsuit against the NIH in the U.S. District Court of Massachusetts, requesting a federal judge to issue an injunction against the new policy. The states argue that the move will severely hinder efforts to cure and treat human diseases, potentially bringing such work to a halt. Florida is not one of those twenty-two states.
On Monday night, a judge in the U.S. District Court of Massachusetts granted a temporary block on the implementation of the policy in those 22 states. This temporary injunction provides a brief reprieve for the affected states, but the broader implications of the policy change remain a concern.
The legal challenges did not stop there. A second lawsuit was filed in the same court by associations representing medical colleges, colleges of pharmacy, schools of public health, and teaching hospitals. These groups argue that the new policy will have a detrimental impact on their ability to conduct vital research and provide education.
A third lawsuit was also filed in the U.S. District Court of Massachusetts by a coalition that includes the Association of American Universities, the American Council on Education, and the Association of Public and Land-Grant Universities (APLU). FAMU is a member of the APLU. This lawsuit underscores the widespread opposition to the administration's plan and the collective effort to protect funding for critical research.
Critics argue that reducing indirect-cost funding will not only stifle innovation but also jeopardize the health and well-being of the nation. As the legal battles unfold, the future of research funding in the Trump 2.0 era remains uncertain, leaving many in the academic and scientific communities on edge.