The Trump administration illegally withheld almost $8 billion in funding for the National Institutes of Health, according to an Aug. 5 report from the U.S. Government Accountability Office.
The GAO found that more than 1,800 NIH grants were canceled and new awards disrupted after the administration ordered federal agencies to halt funding for equity- and gender-related research, grants and contracts.
Five things to know:
1. Funding shortfall: Between February and June 2025, the NIH obligated about $12.8 billion for awards — nearly $8 billion less than the same time period in 2024, according to the report. This amounted to only 62% of what the agency obligated between February and June in 2024 and 64% less of what it had obligated during the same period in 2023.
2. Grant cancellations: After President Donald Trump issued a series of executive orders targeting equity and gender-related programs, HHS — NIH’s parent agency — began canceling grants in early 2025. By June, NIH had terminated more than 1,800 active grants.
3. Paused grant reviews: In January, HHS issued a directive pausing the publication of grant review notices in the Federal Register, which NIH is legally required to publish before holding peer review meetings. This effectively halted NIH’s ability to issue new grants for several weeks, according to the report.
4. Violation of the law: The GAO found that the administration’s actions amounted to an impoundment — an unlawful withholding of congressionally appropriated funds under the Impoundment Control Act of 1974. The agency did not submit the legally required “special message” to Congress justifying the withholding, which is necessary even for temporary deferrals, according to the report.
5. Litigation and continued oversight: Ongoing lawsuits have challenged the grant terminations, and a federal court in Massachusetts ruled that NIH’s rollout of “grant termination actions” were “arbitrary and capricious.” The GAO said it will monitor additional court findings and may revise its decision accordingly.
The GAO has launched 40 investigations into potential illegal impoundments by the Trump administration, previously finding that funds for programs like early childhood education and EV charging were improperly withheld, according to The New York Times. While the White House has denied the allegations and criticized the GAO, it has also indicated it may stop cooperating with some inquiries. The GAO can sue to compel fund releases and has retained legal counsel, but litigation would likely be a last resort.
Becker’s has reached out to the White House for comment and will update this story as more information becomes available.
Click here to access the GAO report.
