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PHOENIX – Attorney General Kris Mayes announced Monday that Arizona, along with 21 other states, is suing the Trump Administration, the Department of Health and Human Services, and the National Institutes of Health (NIH)for unlawfully slashing funds that support critical medical and public health research at universities and research institutions across the country.
The lawsuit challenges the administration’s abrupt decision to cut “indirect cost” reimbursements, which cover expenses such as lab facilities, faculty salaries, infrastructure, and utilities—all essential for conducting biomedical research. The nation’s leading medical research institutions rely on these funds to support groundbreaking innovations in healthcare, including cancer treatments, DNA sequencing, and MRI technology.
Attorney General Mayes: Arizona’s Institutions Face Millions in Cuts
“Arizona students and universities will miss out on millions of dollars in critical funding if the Trump administration is not blocked from defunding NIH and its grants to our state,” said Attorney General Mayes. “Beyond the immediate impact on research, this decision threatens our ability to combat disease and make life-saving medical advancements for generations to come.”
The NIH announced the across-the-board cut to 15% indirect cost rates on Friday, February 7, with the policy taking effect the following Monday, February 10—giving universities and hospitals zero time to adjust their budgets.
Without intervention, the lawsuit warns, these drastic cuts could force research institutions to suspend clinical trials, lay off staff, and even shut down laboratories.
Impact on Arizona’s Research Institutions
The University of Arizona, Arizona State University, and Northern Arizona University collectively received over $249 million in NIH funding in fiscal year 2024. These cuts threaten:
- University of Arizona: $170 million in NIH funding at risk
- ASU (Tempe Campus): Over $65 million in research grants affected
- NAU: Nearly $14 million in lost funding
Private medical institutions will also feel the impact:
- Banner Health: $26 million in funding
- Mayo Clinic Arizona: $17 million in funding
- St. Joseph’s Hospital: $10 million in funding
Arizona institutions alone could lose more than $20 million under the new 15% rule, severely impacting ongoing research and innovation. Students at ASU have already protested against the funding freezes and their detrimental consequences on medical progress.
Legal Challenge: Violations of Federal Law
The lawsuit, filed in U.S. District Court for Massachusetts, argues that the Trump Administration’s policy violates the Administrative Procedure Act, as well as a Congressional directive from Trump’s first term, which specifically bars NIH from imposing blanket reductions on indirect cost reimbursements.
The coalition seeks a court order preventing the administration from enforcing the NIH cuts, ensuring that institutions can continue life-saving medical research without disruption.
National Coalition Against NIH Cuts
The lawsuit is co-led by the attorneys general of Massachusetts, Illinois, and Michigan, and is supported by a broad coalition of 22 states, including:
- Arizona
- California
- Colorado
- Connecticut
- Delaware
- Hawaii
- Maine
- Maryland
- Minnesota
- Nevada
- New Jersey
- New Mexico
- New York
- North Carolina
- Oregon
- Rhode Island
- Vermont
- Washington
- Wisconsin
The NIH is the nation’s primary source of federal medical research funding, which has contributed to scientific breakthroughs that save millions of lives each year. The lawsuit aims to protect that legacy and ensure continued investment in public health and innovation.