AG Jennings Sues Trump Administration to Protect Medical Research Funding

February 10, 2025

NIH Cuts Threaten Critical Research at UD, DSU, and Delaware Hospitals

Wilmington, DE – Attorney General Kathy Jennings, along with 21 other state attorneys general, filed a lawsuit today against the Trump Administration, the Department of Health and Human Services, and the National Institutes of Health (NIH) for unlawfully cutting funds that support groundbreaking medical and public health research across the country.

The coalition is challenging the Trump Administration’s attempt to unilaterally reduce “indirect cost” reimbursements to research institutions, including the University of Delaware (UD), Delaware State University (DSU), and Delaware hospitals. These reimbursements are vital for covering expenses such as lab maintenance, faculty, infrastructure, and utilities. Without this funding, the future of life-saving and transformative medical research could be in jeopardy.

“NIH funding ensures that American biomedical research remains a global leader,” said Attorney General Jennings. “The innovations driven by this research provide hope when conventional treatments fail. These illegal cuts would not only devastate Delaware’s research community but would also hinder medical progress and the fight against disease.”

The majority of NIH-funded research takes place outside of federal government institutions, primarily at public and private universities. For example, the University of Delaware stands to lose approximately $12 million in indirect cost reimbursements, which will severely impact its ability to support critical research and maintain essential research facilities. This loss could also undermine clinical trials conducted in Delaware. Delaware State University is facing a $1.4 million loss, which threatens biomedical research into Alzheimer’s, Parkinson’s disease, breast cancer, and AI-assisted medical imaging analysis.

Indirect cost reimbursements are negotiated with each institution and formalized through a carefully regulated agreement. The Trump Administration’s decision to disregard these agreements could jeopardize decades of progress in public health and medical research. The lawsuit seeks to prevent this reckless action from taking effect.

On Friday, the NIH announced it would slash indirect cost rates to a blanket 15%, far below the actual costs required to conduct cutting-edge research. The cuts are set to take effect immediately, leaving universities and research institutions no time to adjust or prepare for the resulting budget shortfalls. Without swift intervention, this decision could lead to the suspension of clinical trials, disruption of ongoing research programs, layoffs, and even the closure of laboratories.

The attorneys general argue that the NIH’s action violates the Administrative Procedure Act, as well as a directive from Congress passed during President Trump’s first term to block earlier proposals to drastically reduce research reimbursements. This statute, which remains in effect, prohibits sweeping, indiscriminate changes to indirect cost reimbursements. The coalition is asking the court to issue an order preventing the Trump Administration and NIH from moving forward with the cuts.

The NIH is the largest source of federal funding for medical research in the U.S. Its grants have led to numerous breakthroughs, including the development of treatments for various cancers, the first DNA sequencing, and the creation of MRI technology. Many NIH-supported scientists have received Nobel Prizes for their pioneering work.

Delaware is joined in the lawsuit by the attorneys general of Arizona, California, Connecticut, Colorado, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.