A federal judge granted a temporary restraining order hours after Oregon and 21 other states sued the Trump administration Monday over a cap the U.S. Department of Health and Human Services set on funding for research overhead, saying it would cut billions of dollars from valuable medical studies.

The dispute is over a 15% cap the department and the National Institutes of Health (NIH) adopted Feb. 7 for what are called “indirect costs” for research. The funding category covers laboratory space, faculty, equipment and utilities.

The temporary restraining order stops funding cuts in the states that sued. It also requires reports showing the full grants are being distributed. A hearing is scheduled Feb. 21.

“Oregon Health and Science University (OHSU), University of Oregon, and Oregon State University, received more than $400 million in NIH grant awards in recent years,” the lawsuit said.

“President Trump’s disdain for science has been long evident, but these cuts represent a dangerous culmination of years of undermining trusted public health expertise,” said Oregon Attorney General Dan Rayfield. “It is clear this administration has no concern for the well-being of Americans, especially those who rely on this research to improve their quality of life and protect their health.”

Trump, Musk look to cut federal spending

The Trump administration, and Elon Musk’s Department of Government Efficiency, is searching for ways to cut trillions of dollars in federal spending. A federal judge on Saturday temporarily blocked the department from accessing government payment processing systems in response to a suit from Oregon and 18 other states.

NIH said in a post on the social media site X that $9 billion of the $35 billion it granted last year for research was used for administrative overhead. The goal of the policy capping overhead at 15% is to save $4 billion per year.

The Oregon Department of Justice also filed a lawsuit last week over an executive order that directs the federal government not to help with gender transitions for individuals under the age of 19.

How much do Oregon universities get in federal medical research funding?

OHSU received $277 million in NIH funding last year, including indirect costs, a spokesperson said. Those indirect costs went toward things like utilities and facilities.

The University of Oregon received about $162 million in research funding from federal sources for fiscal year 2024. NIH funds made up about $56.7 million, or around 35%, of the federal funding.

“The bottom line is that university research is absolutely critical to our society and to the economy — not for any one group but for everyone,” said Anshuman “AR” Razdan, the University of Oregon’s vice president for research and innovation.

Oregon State University spokesperson Rob Odom said NIH is a valued research partner and any “across-the-board reduction in funding threatens research advances of the utmost importance to Oregon, the nation and the world.”

USA TODAY contributed to this story.

Anastasia Mason covers state government for the Statesman Journal. Reach her at acmason@statesmanjournal.com or 971-208-5615.