City of New York Takes Action to Protect Billions in Federal Funding for Hospitals, Universities, and Research Institutions
June 17, 2025
City Urges Court To Restore Cuts To Research Institutions in New York City
Continues Adams Administration's Work To Ensure New Yorkers Get Every Dollar They Are Entitled to at Every Level of Government
The City of New York today — as part of a coalition of cities and counties — announced action taken to protect $4 billion of congressionally-appropriated research funding to hospitals, universities, and other research institutions by joining an amicus brief in the case of Commonwealth of Massachusetts, et al. v. National Institutes of Health, et al. This brief strongly supports litigation against the unlawful action of the National Institutes of Health (NIH) to cut research grants to these institutions by abruptly changing reimbursement formulas to drastically reduce their funding. The brief argues that these cuts could stall or eliminate lifesaving medical research projects, cause job losses, and undermine the economies of localities across the country.
"New York City is home to the world's best public health and research institutions; not only do millions of patients and their families rely on the work that they do, but they also bolster our local economy and keep New York City at the forefront of medical and health innovation," said New York City Mayor Eric Adams. "These organizations need federal funding to continue their work that saves lives right here in New York City and around the globe. Our administration will always support efforts to ensure that New Yorkers get every dollar in resources they deserve, which is why we are urging the courts to protect this critical funding."
"The decision by the National Institutes of Health to abruptly change funding formulas for these research organizations is a major setback for public health," said New York City Corporation Counsel Muriel Goode-Trufant. "It is also a disappointing message from this federal administration to millions of families hopeful for continued progress on groundbreaking medical cures and treatments to help loved ones who may be suffering. We urge the court to uphold the injunction barring the NIH from implementing these unlawful funding cuts, which were made without explanation or consideration of the devastating impacts they would have."
"The city's public health research infrastructure is critical in keeping New Yorkers safe and healthy," said Deputy Mayor for Health and Human Services Suzanne Miles-Gustave. "Furthermore, universities, research organizations, health care delivery systems, and other institutions affected by these NIH funding streams impact many Americans through groundbreaking research efforts and innovations in public health. We strongly oppose the proposed cuts and reimbursement alterations, and we stand with our partners in opposition to the federal government's proposal."
The NIH spends roughly $32 billion annually on grants which fund medical research in areas like cancer, genetics, and infectious disease. Most funding goes toward "direct" research costs, such as purchasing microscopes and paying researchers' salaries. Some funding, however, goes toward "indirect" costs, including laboratory upkeep, utility bills, administrative staff, and hazardous materials disposal, all of which are essential for research institutions to operate.
The NIH's order seeks to reduce funding for those indirect costs in a manner that the Trump administration says would cut approximately $4 billion a year in funding.
Several states and associations of medical schools, hospitals, and universities sued in the U.S. District Court for the District of Massachusetts, which issued a permanent nationwide injunction. NIH has now appealed that decision to the U.S. Court of Appeals for the First Circuit.
The amicus brief argues that the NIH's proposed budget cuts are arbitrary and capricious because they were enacted without considering the reliance interests of funding recipients. It also contends that NIH's proposed cuts would devastate research institutions in amici's cities and counties, cause job losses, create severe economic disruption, and undermine a critical pillar of localities' strength and civic pride. Finally, the brief makes the case that the cuts would undermine critical medical and scientific research that residents are counting on, including for cancer, diabetes, and heart disease.
In the brief, the coalition urges the First Circuit to uphold a district court ruling enjoining the NIH funding cuts.
The amicus brief was prepared by the Public Rights Project and was joined by the City of New York, along with Sacramento and San Francisco, California; Gainesville, Florida; Chicago, Illinois; Baltimore, Maryland; Boston, Massachusetts; Minneapolis and St. Paul, Minnesota; Albuquerque, New Mexico; Chapel Hill, North Carolina; Cleveland and Columbus, Ohio; Allegheny County and Pittsburgh, Pennsylvania; Providence, Rhode Island; Nashville, Tennessee; Harris County, Texas; Salt Lake City, Utah; and Madison, Wisconsin; among other cities and counties across the country.