Arizona AG, others sue Trump administration over limit on research costs
'Indirect costs' of admin, supplies at center of debate
Researchers at Arizona State University and other in the health care industry could be impacted by a new policy on how much in "indirect costs" National Institutes for Health grants will cover.
ASU file photos
Arizona Attorney General Kris Mayes and 21 other AGs across the U.S. are suing the Trump administration for a move late last week that would block funding for research at large universities.
The administration announced on Feb. 7 it was limiting what are known as "indirect costs" for programs involved in National Institutes of Health research — those costs that can cover administration of programs as well as lab space and supplies —to 15% of the total funding for grants.
Universities around the country have said that could cut tens to hundreds of millions of dollars from federal grants. The AGs suing contend the move is illegal under the Administrative Procedure Act.
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Arizona AG, others sue Trump administration over limit on research costs
'Indirect costs' of admin, supplies at center of debate
ASU file photos
Researchers at Arizona State University and other in the health care industry could be impacted by a new policy on how much in "indirect costs" National Institutes for Health grants will cover.
Posted
Arizona Attorney General Kris Mayes and 21 other AGs across the U.S. are suing the Trump administration for a move late last week that would block funding for research at large universities.
The administration announced on Feb. 7 it was limiting what are known as "indirect costs" for programs involved in National Institutes of Health research — those costs that can cover administration of programs as well as lab space and supplies —to 15% of the total funding for grants.
Universities around the country have said that could cut tens to hundreds of millions of dollars from federal grants. The AGs suing contend the move is illegal under the Administrative Procedure Act.
“This money is owed to Arizonans by law," Mayes stated in a press release. "Beyond the students and institutions negatively impacted now, this will have disastrous and exponential consequences for innovation and progress, curbing our ability to combat disease and protect Americans for generations to come.”
The cuts were slated to take effect Monday.
The University of Arizona had more than $170 million in NIH funding in fiscal year 2024, according to the release. Arizona State University had $65 million, and Northern Arizona University had almost $14 million.
The move would go beyond Arizona's universities. Banner Health received $26 million in NIH funding for the year, followed by $17 million received by Mayo Clinic and $10 million for St. Joseph's.
In a release on policy from the NIH from Friday, officials argue research universities often take lower indirect costs from private foundations but for the NIH it has averaged between 27% and 28%.
"For any new grant issued, and for all existing grants to IHEs retroactive to the date of issuance of this Supplemental Guidance, award recipients are subject to a 15 percent indirect cost rate," the policy stated. "This rate will allow grant recipients a reasonable and realistic recovery of indirect costs while helping NIH ensure that grant funds are, to the maximum extent possible, spent on furthering its mission. "
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