Attorney General Jeff Jackson has secured a permanent injunction that prevents the federal government from cutting hundreds of millions of dollars in health care funding to North Carolina. The court decision comes after the National Institutes of Health (NIH) announced in February that it would reduce indirect cost rates for research funding to 15 percent across all projects.
“This was federal overreach that would have unlawfully blocked hundreds of millions of dollars in health care funding for North Carolina,” said Attorney General Jeff Jackson. “That funding supports lifesaving treatments, clinical trials, and patient care across our state, and the court made clear the federal government can’t cut it unlawfully.”
North Carolina organizations received more than $1 billion in NIH funding during fiscal year 2024. If the proposed cuts had taken effect, the state would have lost significant annual support for medical research and patient care.
The NIH’s planned reduction targeted indirect costs—expenses like laboratory infrastructure and utilities—which are essential for conducting biomedical research. The University of North Carolina at Chapel Hill reported that NIH grants and contracts directly supported over 25,000 jobs and generated $5.34 billion in economic activity in North Carolina during FY2023. The cut could have forced labs to close, disrupted research, suspended clinical trials, and led to layoffs among North Carolinians.
Jackson pursued legal action because federal law prohibits broad changes to how NIH reimburses indirect costs. A trial court first issued a temporary restraining order against the cuts, followed by preliminary and then permanent injunctions earlier this year. This week, an appeals court upheld the permanent injunction.
The North Carolina Department of Justice oversees legal matters statewide and provides services such as consumer protection and public safety programs. As head of this agency, Jeff Jackson represents state agencies in court proceedings and influences governance on legal issues across North Carolina.
The office serves residents throughout the state with services including legal representation, criminal prosecution support, and consumer protection initiatives (source). The main office is located in Raleigh.
