In a recent development, a federal judge in Boston has extended a temporary restraining order blocking the Trump administration from implementing a cap on indirect costs paid to grant recipients by the National Institutes of Health (NIH). The order, which was set to expire on Monday, has now been extended until U.S. District Judge Angel Kelley can make a final decision on whether to issue an injunction on the proposed change.
The proposed 15% cap on indirect costs could potentially impact over $4 billion in research funding for universities and other biomedical research institutions. The new funding policy was announced on a Friday evening in February and was slated to go into effect the following Monday. However, three separate lawsuits were filed over the weekend, leading to Kelley issuing a nationwide restraining order on the policy change.
Researchers and institutions have been vocal about the potential implications of the proposed change. Several groups, including a coalition of mayors led by Boston Mayor Michelle Wu and MassBio, which represents 1,700 Massachusetts-based life science companies, filed amicus briefs in support of the lawsuits. An open letter circulating among researchers about the potential fallout of the payment cuts garnered over 1,000 signatures within 48 hours.
The plaintiffs in the case, which include 22 state attorneys general, universities, hospitals, and associations representing them, argued that the indirect cost cap was not implemented in accordance with NIH’s regulations and goes against laws passed by Congress to prevent such measures. They also claimed that allowing the 15% cap to proceed would result in “irreparable harm.”
During the hearing, both sides presented arguments on the legality of the proposed change and the potential impacts of capping indirect costs. The Trump administration’s lawyer argued that the funds saved on indirect costs would be redirected into new grants to mitigate the impact, distinguishing this effort from a similar attempt made in 2017.
The plaintiffs contended that the move violates the Administrative Procedure Act, deeming the 15% cap as “arbitrary and capricious,” and asserted that lifting the temporary restraining order would lead to irreparable harm. They cited declarations from various institutions outlining potential ramifications such as facility closures, discontinuation of accepting graduate students, and halting clinical trials.
After the hearing, Timothy Leshan from the Association of Schools and Programs of Public Health expressed optimism about the judge understanding the potential impact of the proposed change. Jeremy Berg, a former director of the National Institute of General Medical Sciences, also remained confident that the 15% cap on indirect cost cuts would be struck down in court.
Judge Kelley did not provide a timeline for her decision on whether to issue an injunction or allow the cap to proceed. As the case unfolds, stakeholders in the research community await the final ruling on this crucial issue that could significantly impact research funding across the country. The Benefits of Mindfulness Meditation
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