Commonwealth of Massachuetts v. NIH
Case Overview
A coalition of state attorneys general sued the National Institute of Health, the acting NIH Director, HHS, and the acting HHS secretary over the Trump administration's new 14% cap on overhead for federal research grants, alleging that it violates the Administrative Procedures Act. This case was consolidated with similar cases brought by the Association of American Medical Colleges and Association of American Universities.
The Application
The consolidated plaintiffs, state attorneys general, the Association of American Medical Colleges, and the Association of American Universities, challenged the cap as arbitrary because NIH failed to explain how reducing overhead from historical levels would affect research institutions' indirect costs, compliance capabilities, and federal grant administration without violating statutory constraints on agency discretion.
The Conclusion
Judge Angel Kelley decided the consolidated cases on whether the 14% overhead cap satisfies APA requirements for notice, comment, and reasoned agency action.
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