In response to a lawsuit filed by 22 states, including Colorado, a federal judge has temporarily halted the National Institutes of Health’s decision to cut “indirect cost” rates for medical research grants. The states argued that the 15% across-the-board rate cut would have an immediate and devastating impact on research institutions, potentially leading to layoffs, suspension of clinical trials, and laboratory closures. In Colorado, the cuts would result in a $74 million impact on the University of Colorado Anschutz Medical Campus and a total loss of roughly $90 million in NIH grants to institutions of higher learning.
Colorado Attorney General Phil Weiser criticized the cuts as “devastating” to research efforts in the state, stating that the abrupt and reckless action by NIH would harm universities, important research programs, and the economy. The lawsuit, which names NIH and the U.S. Department of Health and Human Services, alleges violations of the Administrative Procedure Act and Congress’ directive prohibiting categorical and indiscriminate changes to indirect cost reimbursement.
On the other hand, NIH officials claim that cutting indirect cost rates to 15% would result in $4 billion in annual savings by reducing excessive expenses at research institutions. They argue that most private foundations that fund research provide lower indirect costs, and universities readily accept this funding without issues. The judge has scheduled a court hearing for February 21 to further review the case. Overall, the funding cuts have raised concerns about the potential impacts on life-saving medical research and patient care.
