Attorney General Bonta Sues Trump Administration over Unlawful NIH Funding Cuts for Universities and Research Institutions

Coalition also seeks court order barring Trump Administration from implementing drastic funding cuts

OAKLAND — As part of a coalition of 22 attorneys general, California Attorney General Rob Bonta today announced filing a lawsuit against the Trump Administration, the Department of Health and Human Services, and the National Institutes of Health (NIH) for unlawfully decimating funds that support cutting-edge medical and public health research at universities and research institutions across the country. Filed in the U.S. District Court for Massachusetts, the lawsuit challenges the Trump Administration’s attempt to unilaterally cut “indirect cost” reimbursements at every research institution throughout the country, including at the University of California (UC) and at the California State University (CSU). Indirect cost reimbursements are based on each institution’s unique needs, negotiated with the federal government through a carefully regulated process, and then memorialized in an executed agreement. In addition to filing today’s lawsuit, the coalition is seeking a temporary restraining order to bar the Trump Administration’s action from taking effect.

“We are suing President Trump and his administration because they are once again violating the law. Let’s be clear about what they are seeking to do now: they want to eviscerate funding for medical research that helps develop new cures and treatments for diseases like cancer and Alzheimer’s,” said Attorney General Rob Bonta. “The stakes are especially high here in California. Ours is a state known as a national and global leader in life-saving biomedical research, and I will not allow the Trump Administration to jeopardize the extraordinary work being done right now by scientists, scholars, medical professionals, and other workers.”

“Like scores of institutions across the country, the University of California has relied on NIH grants to pursue life-saving research that benefits Americans nationwide,” said UC President Michael V. Drake, M.D. “Cuts of this magnitude would deal a devastating blow to our country’s research and innovation enterprise, undermine our global competitiveness, and, if allowed to go forward, will ultimately delay or derail progress toward treatment and cures for many of the most serious diseases that plague us today. We stand ready to fight to protect this critical investment in a healthier and more prosperous America.”

"Federal grant funding is vital to the CSU’s teaching and research mission, which addresses some of society’s most urgent challenges in health care, agriculture, water, fire prevention and cybersecurity,” said CSU spokesperson Jason Maymon. “The NIH’s drastic reduction in reimbursement for previously agreed upon administrative costs will leave the CSU’s 23 universities with millions in unfunded expenses, jeopardizing critical research and support systems needed for program success. This decision threatens not only groundbreaking research but also the future of student innovation and scientific progress."

"UAW 4811 is proud to support this suit because of its tremendous impact on our members and the critical research they do on projects ranging from cancer to Alzheimer's disease,” said UAW 4811 President Rafael Jaime.

This past Friday, February 7, the NIH announced it would abruptly slash indirect cost rates to an across-the-board 15% rate, which is significantly less than the cost required to perform cutting edge medical research. The NIH purported to make this cut effective the very next business day, Monday, February 10, giving universities and institutions no time to plan for the enormous budget gaps they are now facing. The reimbursements at issue cover expenses to facilitate biomedical research, like lab, faculty, infrastructure, and utility costs. Without immediate relief, this action could result in the suspension of lifesaving and life-extending clinical trials, disruption of research programs, staffing cuts, and laboratory closures. 

In today’s lawsuit, the attorneys general argue that the Trump Administration’s action violates the Administrative Procedure Act in multiple ways. For example, the attorneys general argue that the action is arbitrary and capricious and violates a directive Congress passed during President Trump’s first term to fend off his earlier proposal to drastically cut research reimbursements. That statutory language, still in effect, prohibits the NIH from requiring categorial and indiscriminate changes to indirect cost reimbursements.  

Most NIH-funding research occurs outside of federal government institutions such as both public and private universities and colleges. In California, this includes: 

• The University of California. The UC system has 21 health professional sciences schools, five NCI-designated cancer centers, and six academic medical centers widely recognized as among the best in the nation, and they are international leaders in the education of health professionals, in research that develops new cures and treatments, and in public service that provides healthcare for all Californians regardless of ability to pay. Federal funds are UC’s single most important source of support for its research, accounting for more than half of UC’s total research awards. In Fiscal Year 2023, UC received a total of over $2 billion in NIH contract and grant funding.
• The California State University. The CSU system is the largest public university system in the United States and consists of 23 campuses. In the last audited year, CSU campuses received approximately $158 million in NIH funds.  

The NIH is the primary source of federal funding for medical research in the United States. Medical research funding by NIH grants have led to innumerable scientific breakthroughs, including the discovery of treatment for cancers of all types, the first sequencing of DNA, and the development of the MRI. Additionally, dozens of NIH-supported scientists have earned Nobel Prizes for their groundbreaking scientific work. 

In filing today’s lawsuit, Attorney General Bonta joins the attorneys general of: Arizona, Connecticut, Colorado, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.

A copy of the lawsuit can be found here.