In a divided decision, the U.S. Supreme Court has cleared the way for the federal government to terminate more than $783 million in active research grants from the National Institutes of Health, a move that has drawn intense scrutiny from scientists, public health advocates, and legal scholars. The 5–4 ruling, issued August 21, allows the Trump administration to proceed with its cancellation of thousands of grants tied to topics such as diversity, equity and inclusion (DEI), gender identity, HIV/AIDS, and COVID-19. The majority held that disputes over terminated grants must be heard in the Court of Federal Claims, not in district courts, effectively halting a wave of legal challenges that had temporarily blocked the cuts.
The lawsuit at the center of the case was filed in the U.S. District Court for Massachusetts by a coalition of 16 states, research institutions, and advocacy organizations. In June, Judge William Young ordered the grants reinstated and invalidated the administration’s internal guidance documents that had led to the terminations. But the Supreme Court’s majority disagreed, concluding that the district court lacked jurisdiction to enforce monetary obligations tied to federal grants. While the justices left in place the lower court’s ruling against the guidance documents, they allowed the grant cancellations to proceed.
Legal experts say the shift to the Court of Federal Claims presents a steep hurdle for plaintiffs, who must now pursue complex contractual claims with limited prospects for immediate relief. Meanwhile, advocacy groups and some members of Congress are calling for legislative action to restore the funding and protect future grants from similar terminations.
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