Sixteen states, led by New York, have initiated a federal lawsuit against the Trump administration, challenging substantial funding reductions and policy changes at the National Science Foundation (NSF). The suit contests the elimination of programs designed to promote diversity in STEM fields and a newly imposed cap on indirect research cost reimbursements, actions that have resulted in approximately $1.4 billion in cancelled research grants.
The lawsuit, filed in Manhattan federal court and spearheaded by New York Attorney General Letitia James, argues that these measures compromise the United States' leadership in science, technology, engineering, and mathematics (STEM) and undermine economic growth and national security. James stated, "This administration's attacks on basic science and essential efforts to ensure diversity in STEM will weaken our economy and our national security."
The challenge highlights the termination of NSF initiatives supporting participation by women, minorities, and people with disabilities in STEM, as well as a new policy limiting funding for indirect research costs, such as laboratory space and equipment, to just 15% of total grant funds. These policy shifts contradict longstanding Congressional directives that have guided the NSF's commitment to diversity and inclusivity since 1980.
Following these policy changes, NSF Director Sethuraman Panchanathan announced his resignation shortly after the cancelation of over 1,700 research grants nationwide, impacting projects that collectively total about $1.4 billion. Among the affected institutions is the State University of New York, which faces a loss of approximately $18 million. The NSF operated with a $9 billion budget in fiscal year 2024; however, the Trump administration’s draft budget seeks to slash this funding by 55.8%.
In addition to New York, the states participating in the lawsuit include California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Washington, and Wisconsin.
