NIH Funding Cuts Spark Lawsuit and Fears of Research Crisis in Colorado

Federal Judge Temporarily Halts Funding Cuts After Multi-State Lawsuit

In a swift response to the Trump administration's proposed cuts to medical research, 22 states, spearheaded by Colorado Attorney General Phil Weiser, filed a lawsuit on Monday, February 10, 2025. A federal judge responded by temporarily blocking the cuts late Monday and setting a hearing for later in the month.

The lawsuit targets the U.S. Department of Health and Human Services and the National Institutes of Health (NIH), accusing them of "unlawfully cutting funds that support groundbreaking medical and public health research." The coalition of states argues that these cuts jeopardize vital research conducted at universities and institutions nationwide.

Proposed Cuts Threaten Colorado's Medical Research Landscape

Prior to the judge's intervention, the proposed funding caps, announced late Friday, February 7, 2025, sent shockwaves through Colorado's medical research community. The NIH's decision to limit indirect funding for research projects to 15 percent sparked widespread concern, with experts fearing devastating consequences for the state's research ecosystem.

These indirect funds, often overlooked, are the lifeblood of research, covering essential operational costs like equipment maintenance, administrative staff, and facility upkeep. Universities, health systems, and small businesses reliant on this funding describe it as fundamental to conducting world-class research in the United States.

Financial Fallout Could Exceed $100 Million, Impacting Patients and Jobs

Estimates suggest the financial hit to Colorado could reach $100 million or more, potentially jeopardizing both ongoing research and future breakthroughs. University of Colorado President Todd Saliman warned of a ripple effect, impacting everything from hiring freezes and layoffs to cuts in patient care programs.

"It would have a negative impact on our work to help people feel better and to actually help people get better," Saliman stated, highlighting the potential consequences for patients battling diseases like cancer, Alzheimer's, and heart disease.

UCHealth also voiced concerns about the potential impact on clinical trials and access to innovative treatments, emphasizing the importance of research for advancing patient care.

Research Leaders Express Alarm, Describing Cuts as "Catastrophic"

Across Colorado, researchers expressed shock and dismay at the sudden announcement. Dr. Michael Salem, President and CEO of National Jewish Health, a leading respiratory hospital, described the cuts as "thoughtless" and potentially "catastrophic." He estimated that NJH would need to raise an additional $13 million annually to maintain its research programs if the cuts were implemented.

The proposed 15 percent cap on indirect costs stands in stark contrast to the actual overhead expenses incurred by many institutions, which often exceed 50 percent, particularly for large research universities. The NIH justified the change by citing similar practices among private foundations, a comparison that many research institutions found inadequate.

Small Biotech Companies Face Existential Threat

Small biotech companies, crucial drivers of innovation, are particularly vulnerable to these cuts. Crestone, Inc., a Boulder-based company developing antibiotics to combat drug-resistant superbugs, warned that the cuts could "cripple" its operations. CEO Nebojsa Janjic likened cutting research funds to defunding fire departments - a seemingly unnecessary expense until disaster strikes.

Other small companies like Lohocla Research and Klein Buendel echoed these concerns, emphasizing the vital role of indirect funding in sustaining their operations and developing potentially life-saving treatments.

State Officials Vow to Fight for Research Funding

Colorado Governor Jared Polis's office criticized the cuts, emphasizing the importance of research for innovation, job creation, and economic growth. "Taking away critical research funding undercuts innovation, stifles economic growth and makes America less competitive," stated spokesperson Ally Sullivan.

Colorado's Research Ecosystem Contributes Billions to State Economy

According to United for Medical Research, NIH funding to Colorado institutions exceeds $575 million annually, supporting over 7,000 jobs and generating $1.56 billion in economic activity. The proposed cuts put this significant economic contribution at risk.