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Trump's NIH Cuts to Indirect Costs: What You Need to Know
The recent NIH policy change capping indirect costs for federally funded research grants at 15% threatens to disrupt critical medical and scientific research across Massachusetts and the nation.
This move, justified by comparisons to private research donors, has sparked strong legal opposition from state attorneys general, who argue it violates federal law. With billions in funding at stake, the directive risks halting groundbreaking research, jeopardizing jobs, and shifting scientific progress away from public institutions toward the private sector and international competitors.
Here’s the truth:
Trump’s NIH Policy Change
* On February 7th, the National Institutes of Health (NIH) issued Supplemental Guidance capping all indirect costs for federally funded research grants at 15%, effective February 10th.


* Previously, NIH adhered to negotiated indirect cost rates, which accounted for essential expenses like lab equipment, maintenance, and administration.


* NIH justifies the cut by citing private research donors (e.g., Gates Foundation, Robert Wood Johnson Foundation), which cap indirect costs at 15%.


* The agency claims the change will redirect $2 billion toward direct research.
Legal Challenge & Response
* Massachusetts Attorney General Andrea Campbell and 21 Democratic Attorneys General have sued the Trump Administration, the Department of Health and Human Services, and NIH, arguing the cuts violate the Administrative Procedures Act.


* A U.S. District Court judge issued a Temporary Restraining Order (TRO), renewed on February 21st, delaying implementation while legal proceedings continue.


* Rep. Jake Auchincloss (MA-4) condemned the policy, emphasizing that many research institutions require 60% or more in indirect cost funding.
Impact on Massachusetts
* Massachusetts receives $4 billion in NIH grants annually, funding 5,783 research projects across 219 institutions.


* These funds support 35,000 jobs, making up 9% of the state’s economy.


* NIH-funded research has led to breakthroughs in cancer, Alzheimer’s, and other life-threatening diseases.


* The cuts threaten to halt research, pushing more work into the for-profit pharmaceutical sector and strengthening China’s biomedical industry.
What's Next?
A U.S. District Court Judge has issued a preliminary injunction preventing the Trump Administration from making devastating cuts to NIH and the Department of Health and Human Services.
While they battle it out in court, here are some ways you can have an impact today:
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MassDems are currently partnering with the Wisconsin Democratic Party to call Wisconsin voters in support of Judge Susan Crawford, candidate for State Supreme Court in the election on April 1, one of the most important elections of 2025.
Click to RSVP to WI Phone Banking [[link removed]]
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Phonebank from home to recruit volunteers and to turn out Congressional special election voters for Democrats in FL-01, FL-06, and NY-21: Democrats are only three seats away from a US House majority.
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Town Hall with Senator Warren on 3/18
Senator Warren asked that we let you all know that she will be holding a Town Hall in Lowell this Tuesday, March 18th. Senator Warren will open with remarks and take questions from constituents.
The Town Hall will be held at the UMass Lowell Moloney Performing Arts Center, 35 Wilder St, Lowell, MA 01854. Doors open at 6:00pm, with event starting at 7:00pm
Space is available on a first-come, first-served basis. Please RSVP using the link here [[link removed]] . If you need ADA accommodations, please indicate using the RSVP link or email [email protected] [[email protected]]
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