California Attorney General Rob Bonta announced that a three-judge panel from the U.S. Court of Appeals for the First Circuit has upheld a lower court’s decision to permanently block funding cuts by the Trump Administration affecting medical and public health research at universities nationwide, including the University of California (UC) and California State University (CSU). The disputed funds, known as “indirect cost” reimbursements, support essential expenses such as laboratory facilities, faculty needs, infrastructure, and utilities required for biomedical research.
Attorney General Bonta was part of a coalition of 22 attorneys general who filed suit against the U.S. Department of Health and Human Services (HHS) and the National Institutes of Health (NIH) on February 10, 2025. The lawsuit aimed to prevent abrupt reductions in indirect cost rates for research institutions.
“The Trump Administration wanted to eviscerate funding for medical research that helps develop new cures and treatments for diseases like cancer, diabetes, and Alzheimer’s. Let that sink in: Life-saving research — proudly happening at UCs and CSUs across our state — was under attack,” said Attorney General Bonta. “My fellow attorneys general and I stepped in to stop these illegal actions. The district court sided with us, and now, the First Circuit has, too. We’re starting the new year by building on our previous successes and securing yet another important victory against the Trump Administration.”
On February 7, 2025, NIH issued Supplemental Guidance announcing an immediate reduction in indirect cost reimbursement rates to a flat 15%, effective February 10—leaving universities little time to adjust their budgets. Within hours after Attorney General Bonta filed suit on February 10, a temporary restraining order was granted by the U.S. District Court for the District of Massachusetts against NIH’s proposed cuts. This was followed by a preliminary injunction that later became permanent at both parties’ request; this ruling was then appealed by the Trump Administration.
In its decision affirming the injunctions today, the First Circuit wrote: “the public-health benefits of NIH-funded research are enormous” and concluded:
“[T]he district court properly exercised subject-matter jurisdiction over the plaintiffs’ claims,” and
“NIH’s attempt, through its Supplemental Guidance, to impose a 15% indirect cost reimbursement rate violates the congressionally enacted appropriations rider and HHS’s duly adopted regulations.”
The California Attorney General serves as chief law enforcement authority in California with responsibilities including legal representation for state agencies, criminal investigations, consumer protections, civil rights enforcement initiatives statewide according to its official website. Rob Bonta currently leads this office as noted online, which operates throughout California and forms part of its executive branch.