Trump administration agrees to review stalled and cut NIH grants tied to DEI

As part of the deal, the NIH agreed to stop using special directives that had singled out certain proposals based on their subject matter
PUBLISHED DEC 31, 2025
Trump administration agreed to review thousands of NIH grants stalled or cut over ties to diversity, equity, and inclusion initiatives (Patrick van Katwijk/Getty Images)
Trump administration agreed to review thousands of NIH grants stalled or cut over ties to diversity, equity, and inclusion initiatives (Patrick van Katwijk/Getty Images)

WASHINGTON, DC: The Trump administration on Monday, December 29, finalized a settlement requiring the National Institutes of Health (NIH) to reevaluate thousands of grant applications that had been frozen or reduced amid a broader review of Diversity, Equity, and Inclusion (DEI) related funding.

The agreement resolves part of a lawsuit brought by labor unions and Democratic state attorneys general, who challenged the administration’s earlier decision to halt or rescind hundreds of millions of dollars in research funding they said was unlawfully targeted.

The settlement marks a procedural reset in the administration’s effort to scrutinize federal grants linked to DEI, LGBTQ+ issues, and gender identity research.

Standard process restored

(x/@NIH)
The NIH will revert to its standard review process, abandoning directives that targeted research based on gender identity and DEI (x/@NIH)

Under the agreement, the NIH will no longer operate under the specific directives that flagged certain grants based on subject matter tied to DEI or identity-based research.

Instead, the agency has agreed to review stalled, denied, or frozen applications using its standard evaluation process. The settlement sets firm deadlines for completing those reviews, requiring decisions to be made under existing scientific and administrative criteria.

The agreement does not require the NIH to approve or fund any specific proposal. It only mandates that applications be considered through regular procedural channels rather than categorical exclusions.

Arbitrary and destructive freeze

Researcher performing microbiology separator for PCR diagnosis test in pathology laboratory.
Researchers like Nikki Maphis, who studies the aging brain, say the freeze was 'destructive' to urgent public health needs (Getty Images)

Several researchers named in the lawsuit said the settlement restores a pathway that had been abruptly closed.

Nikki Maphis, a postdoctoral researcher at the University of New Mexico who studies neurodegenerative aging, said the deal allows her application to move forward after what she described as an unjustified delay.

"This agreement allows my grant application, and many others, to move forward for review after an arbitrary and destructive freeze," Maphis said in a statement.

"I look forward to having my funding proposal evaluated fairly so that I can continue contributing to urgent and unmet public health needs," she added.

Legal battles continue

WASHINGTON, DC - OCTOBER 05: The U.S. Supreme Court is seen on October 05, 2021 in Washington, DC. T
While the settlement resolves the immediate status of the grants, the legal battle over whether the initial directives violated the APA heads to an appeals court in January (Getty Images)

The settlement follows a complicated series of court rulings. A federal judge in Boston previously ruled that the NIH grant terminations violated federal law, a decision later partially narrowed by the US Supreme Court.

The high court directed monetary claims to be handled by the US Court of Federal Claims but declined to suspend the lower court’s determination that the administration’s anti-DEI directives violated the Administrative Procedure Act.

The Trump administration is appealing that ruling, with oral arguments scheduled before the First Circuit Court of Appeals on January 6.

TUSCALOOSA, ALABAMA - MAY 01: U.S. President Donald Trump delivers remarks to graduating students at the Coleman Coliseum at the University of Alabama on May 01, 2025 in Tuscaloosa, Alabama. Trump's remarks come the day before commencement ceremonies. (Photo by Anna Moneymaker/Getty Images)
The Trump administration agreed that the end of the fiscal year will not be used as an excuse to deny the stalled funding (Getty Images)

The agreement also addresses timing concerns tied to the federal budget cycle. It explicitly states that the end of fiscal year 2025 will not prevent the NIH from reviewing or awarding funds tied to the affected applications.

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