Federal Judge Temporarily Blocks President Trump’s Plan To Downsize The Budget for the National Institutes of Health

The National Institute of Health building in Bethesda, MD. Source: Duke Government Relations

In the early days of his second term, President Donald Trump and his administration announced an executive order to downsize the National Institute of Health’s (NIH) federal budget by 15% —a move touted as a necessary step toward reducing the overall size of the federal government. While this is a long-term goal for the Republican Party, a swift response by a federal judge showed that this executive action would not go unchallenged. 

The Trump Administration is specifically targeting “indirect costs”—funds that cover utilities, facility operations, and some staff salaries—in an effort to cut approximately $4 billion from the budget. The administration believes that these budget adjustments will redirect a significant portion of NIH funding away from overhead and administrative costs towards scientific research in an effort to streamline processes and reduce federal oversight. 

However, these indirect costs are essential for maintaining the NIH and its associated research programs, which include studies conducted at universities, cancer treatment centers, and hospitals across the nation. In addition to covering equipment management, these funds are vital for supporting safety measures, such as ensuring proper lab conditions to comply with health standards. Without overhead funding, thousands of NIH-funded laboratories and clinics will struggle to maintain the infrastructure needed for their cutting-edge research, which could ultimately lead to disruptions in clinical trials, job losses, and significant delays in scientific and biomedical advancements.

Aware of the concerns posed by the budgeting slash, federal judge Angel Kelley, a Biden appointee, issued a temporary restraining order halting the cuts on the same day they were set to be implemented. This decision arose in light of two lawsuits: one from 22 Attorney Generals nationwide and the other from multiple organizations and universities, arguing that these cuts would cause “irreparable harm” if executed. The temporary restraining order issued by Judge Kelley has no expiration date and will remain until she makes a definitive decision on whether or not to issue an injunction on the NIH budget cuts. 

Following suit in a long line of plaintiffs, newly elected North Carolina Attorney General Jeff Jackson expressed his frustration. “This attempt to slash funding for research awards that have already been granted violates the law and would cost North Carolina’s public universities hundreds of millions of dollars every year going forward,” said Jackson.

As for North Carolina, UNC-Chapel Hill receives funding at a negotiated rate of 55.5%, more than triple the amount the federal government aims to keep funding capped at. A hub for life sciences and biomedical research, the University and the state of North Carolina are uniquely positioned to feel the implications of budget cuts as it is home to some of the country's most renowned hospitals, research centers, and treatment facilities. 

This administration has severely underestimated the importance of overhead costs, as shown by the public and governmental outrage in the days following the decision. As echoed by Dr. Colin Duckett, Duke’s Vice Dean for Basic Science, these costs are not mere administrative expenses; they are essential to sustaining the infrastructure that supports life-saving research and healthcare initiatives. Without funding for these facilities and measures, many advancements to keep the American public healthy are at risk.