Woonsocket Radio News Room

Attorney General Neronha sues Trump Administration for defunding medical and public health innovation research

PROVIDENCE, R.I. – Attorney General Peter F. Neronha and 22 other attorneys general today sued the Trump Administration, the Department of Health and Human Services, and the National Institutes of Health (NIH) for unlawfully cutting funds that support cutting-edge medical and public health research at universities and research institutions across the country.  

The coalition is challenging the Trump Administration’s attempt to unilaterally cut “indirect cost” reimbursements at every research institution throughout the country. These reimbursements cover expenses to facilitate biomedical research, like lab, faculty, infrastructure, and utility costs. Without them, the lifesaving and life-changing medical research in which the United States has long been a leader, could be compromised. 

“This Administration seems hell-bent on upending advancement in this country, and in this instance, that means defunding major medical research initiatives, including those which study diseases that affect many, many Americans,” said Attorney General Neronha. “URI, Brown, and other Rhode Island institutions rely on federal funding to conduct important research around heart disease, Alzheimer’s, and countless other ailments and conditions. This reduction in funding would seriously threaten the future of this research. Further, these funding cuts would lead to Rhode Islanders losing their jobs, thereby negatively impacting their lives and our state economy. People live better, healthier lives because of the medical research conducted at these institutions. If you’ve ever wished for a cure, for better treatment options, for yourself or a loved one, this should feel personal.”

Indirect cost reimbursements are based on each institution’s unique needs, negotiated with the federal government through a carefully regulated process, and then memorialized in an executed agreement. The Trump Administration’s purports to toss those agreements aside, putting public health and medical advancements at risk. The coalition’s lawsuit seeks to prevent that reckless and illegal conduct.     

On Friday, February 7, the NIH announced it would abruptly slash indirect cost rates to an across-the-board 15% rate, which is significantly less than the cost required to perform cutting edge medical research. The NIH purported to make this cut effective the very next business day, Monday, February 10 giving universities and institutions no time to plan for the enormous budget gaps they are now facing. Without immediate relief, this action could result in the suspension of lifesaving and life-extending clinical trials, disruption of research programs, layoffs, and laboratory closures. 

The coalition argues that this action violates the Administrative Procedure Act, including a directive Congress passed during President Trump’s first term to fend off his earlier proposal to drastically cut research reimbursements. That statutory language, still in effect, prohibits the NIH from requiring categorial and indiscriminate changes to indirect cost reimbursements. The coalition is seeking a court order barring the Trump Administration and NIH from implementing the action. 

The NIH is the primary source of federal funding for medical research in the United States. Medical research funding by NIH grants have led to innumerable scientific breakthroughs, including the discovery of treatment for cancers of all types, the first sequencing of DNA and the development of the MRI. Additionally, dozens of NIH-supported scientists have earned Nobel Prizes for their groundbreaking scientific work. 

Most NIH-funding research occurs outside of federal government institutions such as both public and private universities and colleges. In Rhode Island, the reduction of indirect cost reimbursements to 15% would significantly disrupt important research operations at the University of Rhode Island (URI), Brown University, Brown Health, and Care New England. For example, URI testified that this directive would result in the University relying on contingency funds to maintain critical functions in the short-term, and potentially shutting down research projects and laying off staff in the longer-term. Further, researchers at Brown University are currently working on a wide array of NIH-funded research initiatives, including on topics such as dementia, Alzheimer’s disease, heart disease, and diabetes prevention. Brown testified that this sudden reduction would result in the abrupt cessation of current research projects and clinical trials. Finally, indirect cost reimbursement would directly and indirectly lead to the loss of many jobs at these institutions, significantly impacting Rhode Island’s economy.

This lawsuit is being co-led by the attorneys general of Massachusetts, Illinois, and Michigan. Joining this coalition are the attorneys general of Arizona, California, Connecticut, Colorado, Delaware, Hawaii, Maine, Maryland, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.