22 States Sue Over NIH's Sudden 50% Cut to Research Funding

The National Institutes of Health (NIH) recently announced a drastic change in how it handles indirect costs for research, setting a new rate at 15 percent for all campuses. This change, effective immediately and retroactive, has led to significant budget shortfalls for research universities. Previously, these costs, which cover essential support services and facilities maintenance, averaged around 30 percent of the grant value, often exceeding 50 percent. In response, 22 states have filed a lawsuit against this policy, claiming it violates existing laws and a 2017 congressional budget rider. A Massachusetts judge granted an injunction, but it only applies to research centers in the states involved in the lawsuit. This leaves other states facing the financial repercussions of the cut. Indirect costs are crucial for maintaining research environments, covering everything from building upkeep to administrative support.

Source: arstechnica.com