Association of American Medical Colleges et al. v. National Institutes of Health

Why this Matters:

The plaintiffs allege the uniform reimbursement cap of 15 percent for all new research grants, regardless of the indirect cost needs of the institution, outlined in the Rate Change Notice issued by the defendants violates the Administrative Procedure Act and the Due Process Clause of the Fifth Amendment. Institution specific government reimbursements for indirect costs ensures that each research institution receives adequate funding to support overall grant-funded research efforts.

Potential Impact:

Lowering and capping the indirect cost rate for NIH-funded research  jeopardizes grantees’ ability to effectively conduct critical health research.