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Trump administration cannot slash NIH research funding, court rules

The First Circuit Court found NIH’s 15% indirect cost cap unlawful, protecting billions in research funding vital to over 5,700 projects in Massachusetts alone, officials said.

  • A Boston-based federal appeals court ruled Monday that the Trump administration cannot cut billions in National Institutes of Health research funding, blocking a 15% indirect-cost cap.
  • The district court found the guidance violated the Administrative Procedure Act because it was issued without notice or comment and Congress has blocked overhead caps since 2017, limiting NIH’s authority.
  • While indirect rates average about 30, many universities have rates above 50%, and a 15% cap would cause major budget shortfalls, according to Campbell.
  • The appeals court’s decision upheld a lower-court injunction blocking the cuts, and Massachusetts Attorney General Andrea Joy Campbell said it protects `critical funds` for labs, including faculty, infrastructure, and utilities.
  • More than 20 states and national associations sued NIH last year, challenging the NIH Supplemental Guidance's 15% cap and rejecting its claim of `inartful` language.
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Court blocks Trump admin’s medical research funding cuts

(The Center Square) – 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…

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Market Screener broke the news in on Monday, January 5, 2026.
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