The judge temporarily suspended an order by the Trump administration that capped the overhead costs sent to universities and other agencies hosting federally funded research projects.
The directive, which came into effect Monday, sparked criticism from research institutions claiming the new rules would have devastating consequences. He was immediately challenged in court by 22 Democratic Attorney Generals and several major research universities and related groups in the second case.
U.S. District Judge Angel Kelly will then rule in favor of the 22 state attorney generals and take steps to implement, apply or enforce new rules that impose facilities and administrative fee caps. We have granted the request for a temporary restraining order banning the This is part of a federally funded research grant.
“What a Ripoff!
The regulations funded overhead costs associated with the National Institutes of Health (NIH) at 15%.
Once grants are awarded to scientists by the NIH, an additional percentage, in addition to the allocated research funds, will go to facilities that house the work to cover these “indirect costs.” According to a new funding cap from the Trump administration, that percentage has historically been around 27% to 28% for each grant. However, in some cases, negotiation rates could be even higher, like at the University of Michigan, where overhead negotiation rates are 56%.
In 2023, NIH spent about $35 billion on approximately 50,000 grants spent on research institutions such as universities and hospitals. Of that $35 billion, $9 billion is $9 billion in “indirect costs” that covers improvements in buildings, equipment, capital, interest on debts related to certain buildings, and expenses related to operational and maintenance costs, according to the Trump administration. was assigned. (istock)
The lawsuit from the Attorney General allegedly violated a move that violated federal law governing procedures that federal agencies must follow when implementing new regulations. They also claimed that the move had taken the will of Congress. It either passed a law in 2018 that banned the NIH or the Department of Health and Human Services from unilaterally making changes to current negotiation fees or banned implementing an amended approach to overhead reimbursement.
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Kelly’s temporary restraining order requires Trump administration agencies affected by the new rules to file reports within 24 hours to see what steps they are taking to comply with her order. Meanwhile, Kelly has set a face-to-face hearing date on February 21st regarding the issue.
Fox News Digital reached out to the White House to comment on the restraining order, but did not respond when the report was made. However, after the order came into effect Monday, White House spokesman Kush Desai told Fox News Digital: , not more. ”
The National Institutes of Health (NIH) has announced a $9 billion cut in spending in response to a new mandate from the Trump administration. (Aramie/Getty Images)
US District Judge J. McConnell said that the Trump administration is trying to suspend “all activities related to all federal financial assistance obligations or payments” in breach of the order. He said the freeze had been stopped. Presidential enforcement actions.
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McConnell ordered the government to “immediately restore the frozen funds,” noting that the plaintiffs “provided appropriate evidence to show the Trump administration in some cases.” [has] He continued to inappropriately freeze federal funds and refused to resume payments of allotted federal funds despite his order to freeze his “clear and clear” order.
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