Association of American Universities v. Department of Health & Human Services
Case Overview
A coalition of state attorneys general sued the National Institute of Health, the acting NIH Director, HHS, and the acting HHS secretary over the Trump administration's new 14% cap on overhead for federal research grants, alleging that it violates the Administrative Procedures Act. This case was consolidated with similar cases brought by the Association of American Medical Colleges and Association of American Universities.
The Application
The agencies imposed the overhead cap through executive action without formal rulemaking procedures, and plaintiffs argued the cap lacked rational factual support and improperly disregarded the agencies' existing authority to set indirect cost rates through negotiation and indirect cost agreements.
The Conclusion
The case was decided by Judge Angel Kelley in the Massachusetts District Court, resolving the consolidated challenge by the Association of American Universities, Association of American Medical Colleges, and state attorneys general to the research grant overhead restriction.
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