Federal Judge Blocks NIH Grant Policy Overhaul on Indirect Costs

The ruling halts a Trump administration policy capping indirect research costs at 15%, citing potential harm to clinical trials and research institutions.

U.S. District Judge Angel Kelley issued a nationwide preliminary injunction against the NIH's plan to cap indirect costs for research grants at 15%.
The policy, announced in February 2025, would have replaced negotiated rates, typically ranging between 30% and 70%, with a flat rate, reducing funding by $4 billion annually.
Plaintiffs, including 22 state attorneys general, universities, and medical associations, argued the policy violated federal law and threatened ongoing research and clinical trials.
The court found the NIH failed to follow proper administrative procedures, including required notice-and-comment rulemaking, rendering the policy likely unlawful.
The decision preserves current funding structures while legal challenges proceed, ensuring continued support for biomedical research and patient care.