Lance's Corner

NYSAG Sues Trump Administration Over Slash in Medical/Scientific Research Funding

Feb 10, 2025

Per the notice below, the New York State Attorney General (NYSAG), along with 21 other state attorneys general, has filed a lawsuit against the Trump Administration for slashing medical and scientific research funding.

Attorney General James Sues Trump Administration for Slashing Vital Medical and Scientific Research Funding

AG James Joins 21 Attorneys General in Challenging Unlawful Cap on Funding for Biomedical Research at Universities and Other Institutions

New York Attorney General Letitia James today joined a coalition of 21 other attorneys general in suing the Trump administration, the Department of Health and Human Services, and the National Institutes of Health (NIH) for attempting to illegally slash grant funding to universities and research institutions across the country.  Attorney General James and the coalition are challenging the NIH’s new policy that caps “indirect cost” reimbursements at 15% for every research institution in the country.  These indirect cost reimbursements cover all expenses that facilitate biomedical research, including laboratory space, equipment, faculty, infrastructure, and utility costs.  Limiting these reimbursements will threaten lifesaving medical research at institutions across the country and could lead to layoffs, disruptions to clinical trials, and even laboratory closures.  With today’s lawsuit, Attorney General James and the coalition seek to prevent the policy from taking effect.

“This is yet another unlawful and reckless attempt by the Trump administration to undermine vital public institutions and harm the people who rely on them,” said Attorney General James.  “The administration’s decision to cap NIH reimbursement rates could force scientists to shutter their lifesaving research on cancer, diabetes, Alzheimer’s, addiction, infectious diseases, and more.  My office will not stand idly by as this administration once again puts politics over science and endangers public health.  We are suing to prevent this harmful policy from taking effect.”

On February 7, NIH announced it would abruptly slash indirect cost rates for research grants to 15% across the board, significantly less than the cost required to perform cutting-edge medical research.  The NIH also announced that cuts would go into effect the next business day, Monday, February 10, giving universities and institutions no time to plan for the enormous budget gaps they are now facing.  Without immediate relief, this action could result in the suspension of life-saving and life-extending clinical trials, disruption of research programs, layoffs, and laboratory closures.  Attorney General James and the coalition argue that the rate change violates Congressional appropriations law, which has prohibited NIH from altering indirect cost rates without proper authorization since 2018.  This directive was passed by Congress during the first Trump administration, following another proposal by the administration to drastically cut research reimbursements.  In addition, the attorneys general argue that NIH exceeded its authority by making this cut retroactive to existing grants, and that the cut lacks any factual basis and was enacted without proper notice or any opportunity for comment.  The attorneys general are seeking a court order barring the Trump administration and NIH from implementing the action.

The NIH is the primary source of federal funding for medical research in the United States.  Medical research funding by NIH grants has led to innumerable scientific breakthroughs, including the discovery of treatment for cancers of all types, the first sequencing of DNA, and the development of the MRI.  Additionally, dozens of NIH-supported scientists have earned Nobel Prizes for their groundbreaking scientific work.  Most NIH-funded research occurs outside of federal government institutions such as public and private universities and colleges.  In New York, there are currently $5 billion in open NIH grants to institutions throughout the state.  If the proposed funding cap takes effect, approximately 250 institutions in New York would be impacted, encompassing most universities and medical schools in the state.  New York institutions stand to lose approximately $850 million from this policy.  For example, the State University of New York (SUNY) system alone stands to lose $78 million through the full life of its current grants and would have to abandon breakthrough research projects on cancer and Alzheimer’s disease if the cap is allowed to go forward.

Joining Attorney General James in filing this lawsuit are the attorneys general of Arizona, California, Connecticut, Colorado, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.  This matter is being handled for New York by Special Counsel Molly Thomas-Jensen and Special Counsel for Federal Initiatives Rabia Muqaddam of the Executive Division, under the supervision of First Deputy Attorney General Jennifer Levy.

USDOL Issues Comprehensive Employer Guidance on Long COVID

The United States Department of Labor (USDOL) has issued a comprehensive set of resources that can be accessed below for employers on dealing with Long COVID.

Supporting Employees with Long COVID: A Guide for Employers

The “Supporting Employees with Long COVID” guide from the USDOL-funded Employer Assistance and Resource Network on Disability Inclusion (EARN) and Job Accommodation Network (JAN) addresses the basics of Long COVID, including its intersection with mental health, and common workplace supports for different symptoms.  It also explores employers’ responsibilities to provide reasonable accommodations and answers frequently asked questions about Long COVID and employment, including inquiries related to telework and leave.

Download the guide

Accommodation and Compliance: Long COVID

The Long COVID Accommodation and Compliance webpage from the USDOL-funded Job Accommodation Network (JAN) helps employers and employees understand strategies for supporting workers with Long COVID.  Topics include Long COVID in the context of disability under the Americans with Disabilities Act (ADA), specific accommodation ideas based on limitations or work-related functions, common situations and solutions, and questions to consider when identifying effective accommodations for employees with Long COVID.  Find this and other Long COVID resources from JAN, below:

Long COVID, Disability and Underserved Communities: Recommendations for Employers

The research-to-practice brief “Long COVID, Disability and Underserved Communities” synthesizes an extensive review of documents, literature and data sources, conducted by the USDOL-funded Employer Assistance and Resource Network on Disability Inclusion (EARN) on the impact of Long COVID on employment, with a focus on demographic differences.  It also outlines recommended actions organizations can take to create a supportive and inclusive workplace culture for people with Long COVID, especially those with disabilities who belong to other historically underserved groups.

Read the brief

Long COVID and Disability Accommodations in the Workplace

The policy brief “Long COVID and Disability Accommodations in the Workplace” explores Long COVID’s impact on the workforce and provides examples of policy actions different states are taking to help affected people remain at work or return when ready.  It was developed by the National Conference of State Legislatures (NCSL) as part of its involvement in USDOL’s State Exchange on Employment and Disability (SEED) initiative.

Download the policy brief

Understanding and Addressing the Workplace Challenges Related to Long COVID

The report “Understanding and Addressing the Workplace Challenges Related to Long COVID” summarizes key themes and takeaways from an ePolicyWorks national online dialogue through which members of the public were invited to share their experiences and insights regarding workplace challenges posed by Long COVID.  The dialogue took place during summer 2022 and was hosted by USDOL and its agencies in collaboration with the Centers for Disease Control and Prevention and the U.S. Surgeon General.

Download the report

Working with Long COVID

The USDOL-published “Working with Long COVID” fact sheet shares strategies for supporting workers with Long COVID, including accommodations for common symptoms and resources for further guidance and assistance with specific situations.

Download the fact sheet

COVID-19: Long-Term Symptoms

This USDOL motion graphic informs workers with Long COVID that they may be entitled to temporary or long-term supports to help them stay on the job or return to work when ready, and shares where they can find related assistance.

Watch the motion graphic

A Personal Story of Long COVID and Disability Disclosure

In the podcast “A Personal Story of Long COVID and Disability Disclosure,” Pam Bingham, senior program manager for Intuit’s Diversity, Equity and Inclusion in Tech team, shares her personal experience of navigating Long COVID symptoms at work.  The segment was produced by the USDOL-funded Partnership on Employment and Accessible Technology (PEAT) as part of its ongoing “Future of Work” podcast series.

Listen to the podcast

HHS OIG Issues Annual Report on State MFCUs

Per the notice below, the Office of the Inspector General (OIG) of the United States Department of Health and Human Services (HHS) has issued its annual report on the performance of state Medicaid Fraud Control Units (MFCUs).

Medicaid Fraud Control Units Fiscal Year 2023 Annual Report (OEI-09-24-00200) 

Medicaid Fraud Control Units (MFCUs) investigate and prosecute Medicaid provider fraud and patient abuse or neglect. OIG is the Federal agency that oversees and annually approves federal funding for MFCUs through a recertification process. This new report analyzed the statistical data on annual case outcomes—such as convictions, civil settlements and judgments, and recoveries—that the 53 MFCUs submitted for Fiscal Year 2023.  New York data is as follows:

Outcomes

  • Investigations1 - 556
  • Indicted/Charged - 9
  • Convictions - 8
  • Civil Settlements/Judgments - 28
  • Recoveries2 - $73,204,518

Resources

  • MFCU Expenditures3 - $55,964,293
  • Staff on Board4 - 257

1Investigations are defined as the total number of open investigations at the end of the fiscal year.

2Recoveries are defined as the amount of money that defendants are required to pay as a result of a settlement, judgment, or prefiling settlement in criminal and civil cases and may not reflect actual collections.  Recoveries may involve cases that include participation by other Federal and State agencies.

3MFCU and Medicaid Expenditures include both State and Federal expenditures.

4Staff on Board is defined as the total number of staff employed by the Unit at the end of the fiscal year.

Read the Full Report

View the Statistical Chart

Engage with the Interactive Map

GAO Issues Report on Medicaid Managed Care Service Denials and Appeal Outcomes

The United States Government Accountability Office (GAO) has issued a report on federal use of state data on Medicaid managed care service denials and appeal outcomes.  GAO found that federal oversight is limited because it doesn't require states to report on Medicaid managed care service denials or appeal outcomes and there has not been much progress on plans to analyze and make the data publicly available.  To read the GAO report on federal use of state data on Medicaid managed care service denials and appeal outcomes, use the first link below.  To read GAO highlights of the report on federal use of state data on Medicaid managed care service denials and appeal outcomes, use the second link below.
https://www.gao.gov/assets/d24106627.pdf  (GAO report on federal use of state data on Medicaid managed care service denials and appeal outcomes)
https://www.gao.gov/assets/d24106627_high.pdf  (GAO highlights on federal use of state data on Medicaid managed care service denials and appeal outcomes)

CMS Issues Latest Medicare Regulatory Activities Update

The Centers for Medicare and Medicaid Services (CMS) has issued its latest update on its regulatory activities in the Medicare program.  While dentistry is only minimally connected to the Medicare program, Medicare drives the majority of health care policies and insurance reimbursement policies throughout the country.  Therefore, it always pays to keep a close eye on what CMS is doing in Medicare.  To read the latest CMS update on its regulatory activities in Medicare, use the link below.
https://www.cms.gov/training-education/medicare-learning-network/newsletter/2024-03-14-mlnc