A recent government oversight body's report indicates that the previous administration illegally held back appropriations for the National Institutes of Health (NIH). This action, which involved blocking over 1,800 grants, contravened a 1974 statute aimed at preventing presidents from unilaterally freezing funds approved by Congress. The watchdog also noted an $8 billion shortfall in new and continuing awards to the NIH from February to July, classifying this as an illegal impoundment of designated funds.
While the findings of the Government Accountability Office are advisory rather than legally binding, they could empower legislators to challenge the former administration's attempts to manipulate the NIH's $48 billion research budget. This report also provides additional support for numerous ongoing legal challenges against the administration's financial strategies. A federal court had previously deemed some of the NIH's grant cancellations illegal, citing discriminatory practices, a decision that has since been appealed to the Supreme Court.
A legal scholar from the University of Michigan, who previously served as general counsel for the Department of Health and Human Services, affirmed that the impoundment of NIH funds was widely apparent. He stated that the cancellation of over a thousand grants and the implementation of various tactics to hinder new grant approvals clearly demonstrated that the allocated funds were not being spent as intended. He commended the GAO for acknowledging this evident transgression.
Soon after assuming office, the previous administration imposed a moratorium on all communications from the Department of Health and Human Services (HHS). This measure effectively halted NIH's grant-making processes for more than two months, as it prevented the agency from publishing notices of grant review meetings in the Federal Register.
HHS representatives informed the GAO that they had rapidly rescheduled and held meetings affected by the pause, claiming to be on par with previous years' grant reviews. However, the GAO found insufficient justification for the communication halt. Public data revealed that the NIH awarded significantly fewer new grants in the 2025 fiscal year compared to prior years. A recent analysis indicated a $4.7 billion deficit in new NIH grants awarded this year compared to the average of the previous nine years.
Since the resumption of grant review meetings, the administration has implemented several new policies that have impeded the NIH's ability to issue new awards and fulfill existing commitments. For instance, on May 1, the NIH abruptly rescinded American researchers' authority to subcontract with international partners, citing national security concerns. This decision has forced leaders of an estimated 1,800 health research projects to either cut ties with their international collaborators or risk losing their grants.
Furthermore, an additional layer of scrutiny by political appointees, as revealed by internal documents, caused significant delays in the issuance of new and renewed grants. The manner in which the administration slowed the release of funds was unprecedented and shocked the scientific community. A former NIH institute director, who has closely monitored these disruptions, expressed dismay at what he described as incredibly bad faith behavior by the government.
A public policy expert from the University of Michigan emphasized that the GAO report highlights a larger struggle over Congress's power of the purse. He noted that the report compels Congress to ensure that laws like the Impoundment Control Act, which governs federal spending transparency, are upheld. As the fiscal year draws to a close, there are growing concerns that the NIH may not expend all its allocated funds, which would result in their return to the treasury.
Despite the challenges, the CEO of the American Association for the Advancement of Science expressed confidence in the NIH director's commitment to obligate all funds for fiscal year 2025. However, he acknowledged the tight timeframe and the impact of widespread staff reductions at the NIH, which have demoralized many employees. Nevertheless, he believes that the remaining staff are dedicated to ensuring that the funds reach their intended recipient