The Trump administration agreed to a settlement requiring the NIH to reevaluate thousands of grant applications that were stalled or cut over alleged DEI ties. The deal, reached with unions and Democratic state attorneys general, resolves part of a lawsuit challenging cancellations of hundreds of millions in research funding. The NIH will use its standard peer-review process, meet deadlines tied to original submission dates, and is not required to fund specific proposals. Oral arguments on the appeal are set for Jan. 6 in the 1st Circuit.
Trump Administration Agrees to Reevaluate Thousands of NIH Grants Linked to DEI
The Trump administration on Monday reached an agreement to have the National Institutes of Health (NIH) reevaluate thousands of grant applications that had been stalled, frozen, or cut after officials deemed them connected to diversity, equity and inclusion (DEI) efforts.
Settlement Covers Part Of Broader Lawsuit
The deal, negotiated with unions and Democratic state attorneys general, resolves part of litigation that challenged the administration's cancellation of hundreds of millions of dollars in research funding. A federal judge in Boston previously found the terminations unlawful and ordered the reinstatement of several grants.
What The Courts Have Said
The Supreme Court subsequently partially limited the district court's remedy by directing that monetary disputes over the terminated awards be resolved in the U.S. Court of Federal Claims, which handles claims for money damages against the government. At the same time, the Supreme Court declined to stay the district court's finding that the administration's directives violated the Administrative Procedure Act (APA).
NIH Will Use Standard Review Process
Under Monday's agreement, the NIH will revert to its regular peer-review procedures to evaluate applications that were previously stalled, frozen, or denied — rather than follow the prior administration directives that targeted grants tied to LGBTQ issues, gender identity and DEI. The agreement establishes firm deadlines for reviewing and deciding each application based on its original submission date and clarifies that the close of fiscal 2025 will not block the agency from reviewing or awarding covered applications.
Importantly, the NIH is required only to consider affected proposals under its normal processes; it is not compelled to fund any particular application.
“This agreement allows my grant application, and many others, to move forward for review after an arbitrary and destructive freeze,” said plaintiff Nikki Maphis, a postdoctoral researcher at the University of New Mexico studying the aging brain. “I look forward to having my funding proposal evaluated fairly so that I can continue contributing to urgent and unmet public health needs.”
Oral arguments in the appeal of the district court ruling are scheduled for Jan. 6 before the 1st Circuit Court of Appeals. The settlement resolves a portion of the legal dispute and puts thousands of NIH applications back into the agency's ordinary review pipeline.
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