A coalition of American research universities and university associations have sued the National Institutes of Health (NIH) to challenge federal funding cuts to facilities, equipment, personnel, and other indirect costs associated with medical and public health research. On February 7, 2025, NIH issued Notice Number NOT-OD-25-068 and announced it would immediately cut funding for indirect costs to an across-the-board rate of 15%. The plaintiffs in this case are research universities who receive NIH grands and awards that would be heavily impacted by the reduced indirect cost rate. The plaintiffs argued that Notice Number NOT-OD-25-068 violates the Administrative Procedure Act by contradicting existing negotiated cost rate statutes. The plaintiffs requested that the court find the notice unlawful and prevent it from being implemented.
