• All News
• Consumer
• Pro
• New Drugs
• Pipeline
• Clinical Trials
• FDA Alerts

Federal Judge Halts NIH Cuts That Could Impact Medical Research

Medically reviewed by Carmen Pope, BPharm. Last updated on Feb 11, 2025.

By India Edwards HealthDay Reporter

TUESDAY, Feb. 11, 2025 -- A federal judge has temporarily blocked the National Institutes of Health (NIH) from making big cuts in medical research funding ordered by the Trump administration.

The proposed cost-cutting could have reduced support for hospitals, universities and labs across the country.

Monday's ruling by U.S. District Judge Angel Kelley puts on hold funding caps for indirect research costs such as lab security and administrative support. The administration's policy would slash funding for those expenses to 15% from the current 27% to 28% average, CBS News reported.

The NIH estimates the change would save $4 billion a year, but critics warned it would disrupt critical research on common diseases such as cancer, heart disease and diabetes.

The decision will temporarily halt funding cuts in 22 states that sued to block them. Those states include California, New York, North Carolina and Massachusetts, which are among the top NIH grant recipients.

A hearing on the challenge is scheduled for Feb. 21.

"Make no mistake," the Association of American Medical Colleges said in a statement. "This announcement will mean less research. Lights in labs nationwide will literally go out. Researchers and staff will lose their jobs."

Lawmakers from both parties have long opposed efforts to cut NIH’s indirect cost funding.

Those "facilities and administration" costs are hard to attribute on paper as direct research costs, funding recipients told CBS News, but are needed for the studies to continue.

U.S. Sen. Susan Collins, R-Maine, who opposes the cuts, said Robert F. Kennedy Jr., Trump’s nominee for health secretary, may undo them.

"He has promised that as soon as he is confirmed, he will re-examine this initiative that was implemented prior to his confirmation," Collins said in a statement. She told CBS News that she had called Kennedy to register her "strong opposition" to the cuts. The Senate is expected to vote on his nomination this week.

The idea of cutting indirect cost funding is not new.

During Trump's first term, he proposed capping these expenses at 10%, but Congress blocked the plan.

The NIH justified the cutback as similar to rates paid for administrative overhead costs by other nonprofit foundations that fund medical research, CBS News reported.

"The United States should have the best medical research in the world. It is accordingly vital to ensure that as many funds as possible go towards direct scientific research costs rather than administrative overhead," an NIH memo stated.

The Children's Hospital Association, which represents more than 200 hospitals nationwide, called on lawmakers Monday "to prevent unilateral changes in the established processes" for determining the indirect rates. The group noted that such changes are barred by "current law and longstanding Congressional intent."

"Reducing the indirect cost rate will threaten the ability of children's hospitals to provide future groundbreaking cures for children," the association said in a statement.

Meanwhile, current and former health officials said the change would upend an established system for managing research grants.

"We fight like hell trying to keep the rates down," said a former federal health official who worked for years with a team that audited indirect costs on NIH's behalf, according to CBS News.

Before grants are awarded, research institutions must submit detailed proposals explaining how they plan to use the funds.

The largest share of indirect costs typically goes toward maintaining labs and equipment -- not administrative expenses, officials said, as reported by CBS News. Federal research dollars cannot be used for unrelated building expenses.

Auditors regularly inspect facilities and interview researchers to ensure grant money is being used appropriately.

"We do not give away the farm. Whoever said that has never gone out on a site visit with us," a former official said, according to CBS News.

By imposing a flat cap on indirect costs, the Trump administration’s proposal ignores the work already done by health authorities to come up with current funding rates, critics said.

Disclaimer: Statistical data in medical articles provide general trends and do not pertain to individuals. Individual factors can vary greatly. Always seek personalized medical advice for individual healthcare decisions.

© 2025 HealthDay. All rights reserved.

Posted February 2025

More news resources

• FDA Medwatch Drug Alerts
• Daily MedNews
• News for Health Professionals
• New Drug Approvals
• New Drug Applications
• Drug Shortages
• Clinical Trial Results
• Generic Drug Approvals

Subscribe to our newsletter

Whatever your topic of interest, subscribe to our newsletters to get the best of Drugs.com in your inbox.