A coalition of sixteen states sued the Trump administration for its attempt to disrupt and terminate grant funding issued by the National Institutes of Health (NIH). The grants were cancelled in response to President Trump's Executive Orders limiting work on diversity, equity, and inclusion (DEI) and transgender matters. The plaintiffs allege that the administration does not have the authority to terminate congressionally-appropriated funds. The plaintiffs argue the administration has violated the Administrative Procedure Act, the separation of powers, the Spending Clause, the Public Health Service Act, and federal regulations governing NIH grants.
On May 29, 2025, the parties agreed that the case should proceed to the merits without resolution of the requests for temporary relief. They also agreed that the case should proceed on a two-track basis, with the first phase of litigation focusing on the plaintiffs' claims as related to the termination of grants, and the second phase of litigation focusing on plaintiffs' unreasonable-delay claims.