A federal judge has issued a temporary restraining order shielding 23 states from the National Institutes of Health’s efforts to institute an indirect cost rate cap of 15% for new and existing grants. The new rate, intended to go into effect today, would have replaced previously negotiated rates with universities and research institutions. The University of Michigan’s current negotiated rate with the federal government is 56%.
The ruling comes hours after Michigan Attorney General Dana Nessel and 22 other attorneys general challenged the move in a suit filed against the Trump Administration, Department of Health and Human Services, and NIH.
This action, at least temporarily, will help ensure that life-saving research and critical drug discovery efforts continue as normal at university facilities, including Michigan Medicine and C.S. Mott Children’s Hospital. The ruling is limited to plaintiff states.
According to the order issued by U.S. District Court Judge Angel Kelley, the NIH has until Friday to respond. The attorneys general may then file a reply brief by Feb. 18. A hearing with both parties is scheduled for Feb. 21.