Federal Funding Fights: How Lawsuits Are Shaping NIH, FDA, and CMS Futures
Recent lawsuits against the Trump administration's funding decisions for key health agencies—such as the National Institutes of Health (NIH), Food and Drug Administration (FDA), and Centers for Medicare & Medicaid Services (CMS)—have significant implications for public health and scientific progress.
In early 2025, the Trump administration proposed dramatic reductions in NIH funding, specifically targeting indirect cost reimbursements for research grants, lowering them from an average of 27-28% down to a capped 15%. This policy prompted immediate backlash, leading to a lawsuit filed by a coalition of 16 state attorneys general, alongside major research organizations such as the Association of American Medical Colleges and the Association of American Universities. Their primary concern was the administration's potential violation of the Administrative Procedure Act and the broader impact on groundbreaking medical research. As a result, a federal court granted a temporary restraining order, temporarily halting the policy's implementation.
Additionally, in April 2025, the American Civil Liberties Union (ACLU), alongside researchers and public health advocates, sued the NIH over the abrupt termination of more than $1 billion in research grants. The plaintiffs alleged that these cuts disproportionately targeted studies on LGBTQ health, COVID-19, vaccine hesitancy, and minority health, accusing the administration of politically motivated interference that could seriously harm public health and scientific innovation.
Concerns also emerged regarding the FDA's funding and staffing levels, as sweeping layoffs orchestrated under the Department of Government Efficiency (DOGE), led by Elon Musk, significantly reduced personnel critical for drug review processes. Experts warned that these cuts could endanger public health by weakening the agency's ability to adequately review new medications.
Although CMS was not directly involved in specific litigation at this stage, broader federal budget cuts raised alarm among healthcare professionals about potential impacts on Medicaid coverage, risking disruption of care for millions of Americans.
These lawsuits underscore the contentious landscape around health agency funding and highlight the high stakes involved in federal funding decisions. They serve as critical reminders of how policy choices can profoundly influence public health outcomes, medical research, and equitable healthcare access.
See link for list of all lawsuits around President Trumps EA lot of the impoundment is illegal. Lots of lawsuits going on. You can track ongoing litigation here: https://www.justsecurity.org/107087/tracker-litigation-legal-challenges-trump-administration/
