Illinois Attorney General Kwame Raoul joined a coalition of 22 attorneys general in filing a lawsuit challenging the National Institutes of Health’s (NIH) February 7, 2025, decision to reduce “indirect cost” reimbursements to NIH grant recipients, including Illinois State and other research institutions referenced in the suit. Indirect cost reimbursements cover expenses necessary to conduct biomedical research not covered by allowable, direct expenses. These costs are institutional expenses not directly attributable to any given award, such as compliance costs, library costs, and administrative support. 

On the afternoon of February 10, 2025, a federal district judge granted a temporary restraining order on the NIH indirect cost rate change, allowing researchers in Illinois, including our Illinois State scholars, to continue using their current federal rates. 

Illinois State University and other universities in the state work on cutting-edge medical research relied upon by the public. The University currently holds 8 direct NIH awards and 3 NIH subawards, totaling $3.3 million in direct funding and $218,000 in subawards. These funds are used to conduct groundbreaking research, including research to advance our fundamental understanding of biological processes and improve diagnostic tools.   

Prior to the temporary restraining order, the proposed NIH 15% indirect cost cap would have reduced institutional reimbursements by approximately $238,000 (68.7% reduction) and impacted the University’s ability to effectively carry out its research mission. As a Carnegie R2 institution, Illinois State prioritizes supporting faculty involvement in foundational research. As a student-centered institution, the University aims to provide similar foundational research experiences for our students. Such a drastic reduction in our indirect cost recovery would have hindered the University’s ability to reinvest in research support services and student research programs, purchasing lab equipment, building research infrastructure, and ensuring compliance.  

This policy change would have jeopardized Illinois State’s ability to support students, conduct impactful research and contribute to the biomedical and STEM workforce. However, the University took immediate action to partner with institutions from across the country to advocate for change. A cross-divisional team of individuals worked through the weekend and will continue to monitor future developments.

This remains a fluid situation; direct communications will be sent to scholars who could be affected by any future changes and general information will continue to be shared with the campus community when warranted.