Published February 10, 2025
By : Staff Writer
Michigan Attorney General Dana Nessel has filed a lawsuit to protect the state and its residents from what she describes as "unlawful actions by the National Institutes of Health (NIH)."
She argues that these actions could severely harm critical public health research conducted at universities and institutions across the United States.
The states joining Michigan in this lawsuit include Massachusetts, Illinois, Arizona, California, Connecticut, Colorado, Delaware, Hawaii, Maine, Maryland, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.
The lawsuit states, "Without relief from NIH's action, the cutting-edge work to cure and treat human diseases at these institutions will halt."
It addresses the "indirect cost rates" associated with NIH's research funding.
High-level research requires financing for the direct costs of individual projects and the indirect costs that support multiple projects. These indirect costs are categorized as "facilities" and "administration" costs.
For example, universities need buildings for research and must maintain them. These facilities require heating, electricity, and infrastructure to comply with legal, regulatory, and reporting requirements.
While these facilities' costs cannot be attributed directly to any research project, they are essential.
University personnel also require administrative support, including clerical staff, IT support, cybersecurity measures, data repositories, and administrative staff.
Though these administrative costs cannot be linked to specific grants or projects, they are crucial for the university's operation and the facilitation of research.
If research aimed at curing and treating human diseases is halted, it would directly impact the well-being of citizens in the plaintiff states.
These individuals benefit from research that leads to advancements such as modern gene editing, vaccines (including flu vaccines), and potential cures for diseases like cancer, infectious diseases, and addiction.
Stopping research that enhances our understanding of health conditions would adversely affect the well-being of these citizens.
Universities and research institutions play vital economic and social roles in each state. They employ thousands of people, educate and train many more, and foster investment and partnership opportunities with the private sector.
Research institutions negotiate their indirect cost rates with the federal government through a regulated process overseen by the Office of Management and Budget (OMB) and the Department of Health and Human Services (HHS).
These indirect cost rates are based on each institution's unique needs and cost structures and are derived from documented and actual costs incurred by that institution.
Once a specific indirect cost rate is negotiated, it is typically formalized in a written agreement that applies to all of the institution's federal grants.
Following the execution of this agreement, the federal government audits the research institution's indirect costs to ensure compliance with the negotiated rate and its calculations.
The agency can only deviate from the negotiated rate when required by federal statute or regulation or if a deviation is specifically requested and justified through a decision-making process that outlines the criteria and circumstances that warrant such a decision.
