(The Center Square) – Spokane joined the ranks of others suing the Trump administration on Friday amid attempts to reduce federal spending after research institutions spent $9 billion in NIH grants on “indirect costs.”
The National Institutes of Health posted on X earlier this month that of the $35 billion it handed out in research grants last year, 25% went toward “administrative overhead.” In response, the NIH attempted to reduce its maximum indirect rate to 15%, which a federal judge blocked.
“NIH lowered the maximum indirect cost rate research institutions can charge the government to 15%,” according to the post. “Above what many major foundations allow and much lower than the 60%+ that some institutions charge the government today.”
According to the NIH, indirect costs include depreciation of buildings, equipment and capital improvements, interest on debt associated with those areas, and maintenance and operational expenses. Overhead also includes spending on accounting, personnel, and other costs.
The administration believes the new policy could save taxpayers $4 billion annually if it does take effect. Critics argue the 15% rate would force research institutions to absorb more overhead or cut spending, potentially impacting the quality and extent of their work.
“The Trump administration is proposing a dramatic and unacceptable reduction in support for health science research that will damage Spokane,” Mayor Lisa Brown wrote in a news release.
According to the NIH, the Spokane region received nearly $3 million in related grants across at least four organizations last year. However, Washington State University and the University of Washington, both with medical campuses in Spokane, received more than $617 million combined.
Brown joined the amicus brief opposing the administration’s move on Friday. The filing doesn’t list the city of Spokane but includes Brown and at least 18 other mayors. Several other cities also signed on as municipalities rather than individual elected officials.
“Multiple partners and civic leaders have worked for decades to establish Spokane’s University District,” Brown wrote in the release. “The research being conducted at Washington State University Spokane helps save lives. Slashing support for research institutions is not only a threat to the health of Americans, but it will have permeating repercussions on local economies.”
She said if the NIH follows through, it’ll cost Spokane jobs and jeopardize years of progress.
“City resources will be required to replace investment by NIH and support workers who have lost their jobs,” according to the brief.
The Associated Press reported on Feb. 21 that a federal judge extended the current block on the NIH proposal until the court makes a final decision.
