In a major legal development, 13 prestigious US colleges have filed a lawsuit against the National Institutes of Health (NIH) over an executive order issued by the Trump administration. The order seeks to limit the funding allocated for indirect costs tied to research grants. The lawsuit, filed on February 9, 2025, aims to protect billions of dollars in research funding, which the plaintiffs argue is essential for the ongoing development of scientific innovation across US universities. The plaintiffs claim that the order threatens the infrastructure of vital research across the nation.
The lawsuit, which does not include Harvard University as a plaintiff, was filed by a coalition of universities, including Ivy League schools and institutions affiliated with major public universities. As reported by The Harvard Crimson, these institutions allege that the NIH order, which mandates a significant reduction in indirect cost reimbursements, violates federal law and risks the nation’s position as a global leader in research and innovation.
A major cut to indirect costs
The NIH’s controversial order aims to cut the funding provided for indirect expenses, such as utilities, laboratory equipment, and maintenance costs, which are essential to supporting research projects. Currently, universities charge the NIH up to 69 cents for every dollar spent on research, but under the new directive, that reimbursement would be limited to just 15 cents per dollar. This dramatic reduction is expected to impact the operation of research labs across the country.
According to former Harvard Medical School (HMS) Dean Jeffrey S. Flier, the order could result in severe cuts to research facilities, laying off staff, and even shutting down critical scientific projects, as reported by The Harvard Crimson . In 2024, the NIH provided approximately $70 million in indirect cost funding to Harvard Medical School. Flier described the move as “moronic” and warned that it would drastically harm essential research efforts, potentially putting many jobs at risk.
Legal challenge backed by university associations
The lawsuit is being led by 13 universities, but as The Harvard Crimson notes, it is significant that Harvard University is not involved in the litigation. Instead, the suit is supported by major educational associations, including the American Council on Education, the Association of Public and Land-Grant Universities, and the Association of American Universities.
The lawsuit alleges that the NIH’s decision to impose a universal cap on indirect costs disregards Congress’s instructions to consider the unique cost structures of individual institutions when calculating grants. The plaintiffs argue that this one-size-fits-all approach undermines the diverse needs of universities across the country.
Potential consequences for US research
The plaintiffs also emphasize that this decision, if upheld, could have long-lasting consequences for the national research landscape. The lawsuit claims that such drastic cuts would not only hinder the scientific community’s ability to innovate but also threaten the nation’s competitive edge in global research. As The Harvard Crimson reported, university leaders have argued that the NIH’s actions are part of a broader effort by the Trump administration to dismantle critical funding for higher education institutions.
This legal action highlights the ongoing tensions between the federal government and higher education institutions, as well as the profound implications for US research capabilities in the years ahead. The lawsuit is set to proceed in federal court, with a hearing scheduled for February 21, 2025.