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

Why this Matters:

The plaintiffs challenge the National Institutes of Health’s (NIH’s) rate change notice, which adopts a uniform reimbursement cap of 15 percent for all new and existing NIH grants as of February 10, 2025, regardless of the indirect cost needs of the institution. Plaintiffs argue that the notice violates the Administrative Procedure Act and the Due Process Clause of the Fifth Amendment. This appeal addresses whether the district court was correct in finding that the defendants’ violated the Administrative Procedure Act and permanently enjoining the defendants’ implementation of the guidance and subsequent reimbursement cap.

Potential Impact:

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