Connecticut and 21 other states jointly sued the federal government on Monday over the administration’s move to slash funding provided to research institutions through the National Institutes of Health.  

Last week, NIH announced that the funding it provides to grantees for “indirect costs,” like lab, utility and administrative personnel costs, would be limited to 15% of the grant award. Currently, the average indirect cost rate is between 27% and 28%, though some organizations have rates that are much higher, according to the agency.

The coalition of states, which is co-led by the attorneys general of Massachusetts, Illinois and Michigan, is seeking a court order barring the Trump administration and NIH from going through with the funding cuts. 

The lawsuit, filed in the U.S. District Court for Massachusetts, said the effects of the change would be “immediate and devastating.”

“This agency action will result in layoffs, suspension of clinical trials, disruption of ongoing research programs, and laboratory closures,” the lawsuit reads.

Connecticut Attorney General William Tong called the move an “illegal overreach.

“Donald Trump is defunding cancer research. He is defunding treatment for heart disease. He wants to defund research into autism, Alzheimer’s, and preventable newborn deaths,” Tong said in a statement on Monday.

Connecticut’s major research institutions, like UConn and Yale, could see significant cuts to their funding. 

The plan would eliminate $35 million in funding for the University of Connecticut and the University of Connecticut Health Center for research into issues like cancer, Alzheimer’s disease and depression, according to Tong’s statement. The institutions together received a total of over $620 million in NIH funding this year, he added.

In federal fiscal year 2023, Yale School of Medicine ranked fourth in the nation for total NIH funding provided to medical schools, receiving a total of $571 million, with an indirect cost rate of roughly 29%.

Spokespeople at the Yale School of Medicine did not respond to a request for comment.

Representatives from trade groups that include biotech companies said the announcement has had a chilling effect on the industry.

“If you believe in the industry and you believe it’s doing really good productive work, [the funding cut] is not a good thing,” said Paul Pescatello, executive director for the Connecticut Business and Industry Association’s Bioscience Growth Council.

Jodie Gillon, president of BioCT, said roughly half of the businesses in the trade group receive money from NIH. She said she’s heard of internship offers that have been rescinded or put on hold as a result of the announcement. 

“This is really their lifeline — this type of funding,” Gillon said, adding that the announcement has created “panic and uncertainty.

“It’s hard to grow and commit any resources when you don’t know where the money will come from.” 

Gillon and Pescatello both said it was refreshing to see the state taking a stand against the proposed cuts.

“I’m glad Connecticut saw this as a priority and promptly took action,” Gillon said.