New York sues feds over cuts to CUNY, SUNY research and diversity rollbacks

ALBANY, N.Y. (NEXSTAR) — New York State sued the National Science Foundation on Wednesday to block federal cuts to science research and the push to shutter education diversity programs in science, technology, engineering, and math. Leading a coalition of 16 states, Attorney General Letitia James filed the lawsuit in the U.S. District Court for the Southern District of New York and said slashing funds would damage the state's schools, economy, and position as a science leader.

“Every time we go online, scan a barcode at checkout, or get an MRI, we use technology made possible by the National Science Foundation,” James said in a statement announcing the lawsuit, which is available to read at the bottom of this story. “This administration’s attacks on basic science and essential efforts to ensure diversity in STEM will weaken our economy and our national security."

NSF has not yet commented on the lawsuit, but its public policy updates said the 15% limit should standardize grant budgeting and improve oversight. The agency said the updates would "ensure fairness and equity for all categories of awardee organizations" and "simplify the grant application and administration process." The lawsuit cites an NSF email blaming "evolving programmatic priorities and budget uncertainties" for the cuts.

Still, NSF delayed implementing the cap through June 13, the scheduled date for a federal hearing at the U.S. District Court for the District of Massachusetts. Agency officials have pointed to a need for new strategies to build a diverse STEM workforce and invest in research infrastructure.

The lawsuit claimed that NSF broke the law by withholding the money, violating the Administrative Procedure Act by changing long-standing policies without public input or Congressional approval. It argued that the agency is making it harder for women and minorities to enter science fields and called NSF's actions arbitrary and capricious.

According to the complaint, the NSF canceled dozens of projects on April 18 that boosted participation in STEM among women, people of color, and people with disabilities. These changes are already harming the state, according to James's office. Those canceled projects included 18 across the City University of New York system, which was promised a total of $11 million in now-canceled federal grants.

The lawsuit also took aim at a May 2 NSF policy limiting how much universities can be paid back for the "indirect costs" of grant-funded research projects. "Indirect costs"—including things like lab space, electricity, and equipment—would be capped at 15%. Twenty-three State University of New York campuses got over $104 million from NSF in 2024 and were supposed to receive $24.6 million in reimbursements for indirect costs in 2025. The new cap would cut about $18 million from that amount, according to the lawsuit, leaving under $7 million.

The lawsuit argued that the cuts would force researchers to abandon work, lay off staff, close laboratories, and stop conducting research that's important for national safety, health, and the economy. It cited examples like climate change research at UAlbany and microelectronics work at the University at Buffalo. Binghamton University also leads an NSF project to create new battery technology.

What's more, New York and the other plaintiffs said the cuts contradict the National Science Foundation Act of 1950, mandating that the agency ensure access to underrepresented groups who have historically been left out. Because Congress required diversity to be a "core strategy" of NSF, the number of women in science and engineering fields doubled from 1995 to 2017, and the share of people of color rose from 15% to 35%, according to federal data in the lawsuit.

The plaintiffs in the lawsuit include California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Washington, and Wisconsin. They asked the court to rule that the two new NSF policies are illegal and to block the agency from putting them into effect. The lawsuit named the NSF and its director, Brian Stone, as defendants.

In 2023, courts blocked federal efforts from the National Institutes of Health and the Department of Energy to limit indirect costs after similar legal challenges, James’s office noted.

Take a look at the latest lawsuit, filed May 28, below: