Oregon Attorney General Dan Rayfield, along with attorneys general from 21 other states, are attempting to block the latest Trump administration plan to cut federal funding to universities.
Ten days ago, the Trump administration attempted to halt all federal funding, an effort that was quickly blocked by a judge and withdrawn.
The latest action came last Friday when the National Institutes of Health (NIH) announced to cap 鈥渋ndirect costs鈥� funding for its research grants to 15%. Indirect costs are often associated with expenses that support medical research, like the cost to maintain labs, the cost of utilities such as gas and electricity and the cost of support staff. The average hovers around 28%, according to the agency.
Over the weekend, higher education leaders across the U.S. denounced the funding rate change, saying the move could halt life-saving medical research occurring at universities. NIH grants fund research for cancer treatments, vaccine development and cures for infectious diseases, among other things.
In the lawsuit, filed Monday, plaintiffs said the policy would have 鈥渋mmediate and devastating鈥� effects.
鈥淢edical schools, universities, research institutions, and other grant recipients across the country have already budgeted for the specific indirect cost rates that had been negotiated and formalized with the federal government through the designated statutory and regulatory legal process,鈥� wrote the plaintiffs in the lawsuit. 鈥淭his agency action will result in layoffs, suspension of clinical trials, disruption of ongoing research programs, and laboratory closures.鈥�
鈥淧resident Trump鈥檚 disdain for science has been long evident, but these cuts represent a dangerous culmination of years of undermining trusted public health expertise,鈥� Rayfield said in a press statement. 鈥淚t is clear this administration has no concern for the well-being of Americans, especially those who rely on this research to improve their quality of life and protect their health.鈥�
A federal judge in Massachusetts granted a temporary restraining order blocking the government鈥檚 action to cut the funding Monday afternoon. The judge asked NIH to submit a response to the lawsuit by Friday.
The potential impact of the NIH funding change would cut deeply into the budgets of some of Oregon鈥檚 largest research institutions.
Oregon received about $388 million in NIH funding last year, More than 70% of that funding, $277 million, was awarded to Oregon Health & Science University.
The NIH鈥檚 policy change would have a substantial impact on OHSU鈥檚 bottom line. The university鈥檚 current negotiated rate for indirect costs is 56%, according to the . The suit estimates OHSU could lose about $80 million in NIH funding with the 15% cap.
鈥淭hat loss of funds would have an immediate impact on OHSU鈥檚 ability to fund critical facilities, research compliance and animal care,鈥� said the lawsuit. 鈥淚t would also compromise OHSU鈥檚 ability to carry out ongoing clinical trials and could immediately and directly impact patient care.鈥�
An OHSU spokesperson said the university filed a declaration in support of the lawsuit and is working to evaluate the potential impacts of the NIH policy.
鈥淭he research conducted at OHSU leads to life-saving therapies and technologies and contributes to the global effort that seeks to improve human health and well-being,鈥� OHSU Interim President Steve Stadum said in a statement. 鈥淩esearch is a foundational pillar of what makes us an academic health center, and we must do all we can to protect it.鈥�
The state鈥檚 big three public universities 鈥� Oregon State University, Portland State University and University of Oregon 鈥� also received a large chunk of money from NIH last year.
UO was awarded more than $40 million in NIH research grants in 2024, the second-largest amount in the state behind OHSU.
鈥淯niversity of Oregon representatives have come together to consider plans and changes that may be necessary in response to new rules, guidance, or laws,鈥� said a UO spokesperson in an emailed statement. 鈥淥ur guidance at this time is to continue our important research as normal and support our university community.鈥�
A spokesperson for Oregon State, which received about $21 million in NIH funds last year, said the agency is an important research partner with the university. But OSU said, 鈥淎ny across-the-board reduction in funding threatens research advances of the utmost importance to Oregon, the nation and the world.鈥�
This story may be updated.