The U.S. Court of Appeals for the 1st Circuit has affirmed a lower court’s decision barring the Trump administration from cutting funding for medical and public health research at universities and other institutions, following a lawsuit by 22 attorneys general.
In February 2025, the Trump administration announced through its Supplemental Guidance that it would impose a 15% indirect cost across the board, affecting medical and research institutions, including the University of California and California State University.
California Attorney General Rob Bonta, as part of the coalition with 21 other attorneys general, sued the U.S Department of Health and Human Services and the National Institutes of Health.
In 2023, UC received over $2 billion in NIH grant funding, and CSU campuses received roughly $158 million in NIH funds.
After the Trump administration attempted to appeal the lower court’s decision, the appellate court’s decision permanently bars the administration from cutting those funds.
“We agree with the district court that it had jurisdiction over the plaintiffs’ claims and that NIH’s action is unlawful because it violates a statute and regulations,” the decision states.
The Center Square reached out to the HHS, but Press Secretary Emily Hilliard responded that the HHS does not comment on litigation. The NIH did not respond for comment.
The decision reached on Monday concludes that the NIH-funded research is essential and that the 15% indirect cost rate “violates the congressionally enacted appropriations rider and HHS’s duly adopted regulations.”
“My fellow attorneys general and I stepped in to stop these illegal actions. The district court sided with us, and now, the First Circuit has, too. We’re starting the new year by building on our previous successes and securing yet another important victory against the Trump Administration,” Bonta said in a news release.
In addition to California, the lawsuit was filed by Arizona, Connecticut, Colorado, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington and Wisconsin.
