New executive orders and changes to federal research funding have prompted Colorado to pursue legal action against the Trump Administration and the National Institute of Health (NIH).
Colorado’s Attorney General, Phil Weiser, is working with the CU system and 22 other states to sue the Trump Administration and the NIH for the damages this funding cut will inflict upon universities.
The NIH announced a 15% indirect cost rate for medical research grants, replacing the previously negotiated rate of 25-75%, varying on university and program.
Previously, researchers were able to use 25-75% of their grants on facilities and administrative costs. The proposed 15% rate would limit the ability of researchers to cover operational costs.
Facilities and administrative fees cover everything from research administration to heating in the labs. According to Dean of the Graduate School, Hillary Fouts, these funds are essential for processing payments, hiring and paying lab assistants.
“Without immediate relief, this action could result in the suspension of lifesaving and life-extending clinical trials, disruption of research programs, layoffs and laboratory closures,” according to a press release from the attorney general’s office.
A partner statement from the Association of American Universities (AAU) on Feb. 10 described said the proposed 15% indirect cost rate would undermine research directed at curing chronic disease and cancer.
This funding cut impacts the CU school system’s existing and future research programs. “Initial estimates show the policy would result in over $80 million annual reduction to CU with the largest impact at the Anschutz Medical Campus,” said Vice President of the University Counsel, Jeremy Hueth in a federal transition update.
Fouts said funding cuts impose an opportunity cost on researchers at UCCS. Faculty members have already begun to see opportunities for funding disappear.
Faculty members signed up to participate in a proposal-writing workshop at CU Denver with the National Endowment for the Humanities were notified that they could no longer attend the event due to pause orders to the NEH on travel and outreach.
Fouts said rapid changes at the federal level are making it difficult for researchers to apply for grants for future projects. “All of this confusion and uncertainty is potentially going to affect future awards,” she said.
Fouts is setting up weekly support meetings for faculty, and Vice Chancellor of Strategic Initiatives Robin Parent announced the formation of a working group for community members impacted by funding cuts. The group will meet weekly to focus on the campus impact of the executive orders and implement guidance offered by the CU system office.
Fouts and Hueth are encouraging researchers to continue their work as normal unless an official stop order is issued at the federal level.
According to Emily Skop, a professor for the geography and environmental studies department, NIH administrative fees produce a “ripple effect,” starting with university faculty and extending outward into Colorado’s economy.
In 2024, Colorado researchers received $158,000 in health and science funding for every 1,000 residents according to Axios. This amounted to $364 million dollars from the National Science Foundation and $567 million from the NIH that was given to Colorado researchers.
Skop said research is responsible for “boosting local businesses, attracting talent and fostering innovation, leading to a larger overall economic impact.” She said federal grant freezes would be “devastating” for both researchers and Colorado’s economy.
According to the AAU, the Trump Administration’s proposed funding cut would negatively impact the U.S. economy as well as the nation’s position as a world leader in science and innovation. NIH funding cuts would be “a self-inflicted wound,” the AAU said.
“This is a rapidly evolving situation, and the Office of Legal Counsel and Federal Relations will continue to keep you updated on this and other federal transition issues,” said Hueth in the federal transition update.
The CU system provides frequent updates to ongoing legal action on their Federal Transition Updates page. UCCS has a designated Campus Communications page featuring statements from UCCS Administration as well as existing policies from the Board of Regents.
This article is part of a series focusing on how the executive orders from the Trump Administration affect students. The previous article on DEI executive orders can be found here.
Photo courtesy of History.com.