The federal District Court in Massachusetts has enjoined further implementation of Supplemental Guidance on the 2024 National Institute of Health Grants Policy Statement in three separate suits consolidated for decision. One case was brought by the Attorneys General on behalf of 22 states. One was brought by five medical associations and one was brought by 17 other associations and universities. The plaintiffs argued that the Guidance (NOT-OD-25-068), a rate change notice that impacts thousands of existing grants totaling billions of dollars in all 50 states, ignores existing regulations, is in excess of statutory authority and violates the Administrative Procedure Act because it is arbitrary and capricious, the Administration failed to follow proper procedure, and the Notice is impermissibly retroactive. (Massachusetts v. National Institutes of Health, No. 25-CV-10338, 3/5/25.)
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