National Science Foundation Sued Over DEI Funding Rollback (2)

Sixteen states say the National Science Foundation is illegally divesting millions of dollars from university research efforts to align with the Trump administration’s anti-DEI mandate, according to a new lawsuit filed Wednesday.

The coalition of states said in a complaint that NSF gave notice in April to terminate research projects that seek to increase science, technology, engineering, and mathematics participation by women, minorities, and people with disabilities; that study misinformation; and that address environmental justice. The states allege in the US District Court for the Southern District of New York that NSF’s actions are unconstitutional and violate the Administrative Procedure Act.

The plaintiffs “bring this action to protect their states and institutions from NSF’s unlawful actions that will devastate critical STEM research at higher education institutions,” they said.

NSF declined to comment on the suit Thursday.

NSF’s directive comes after President Donald Trump signed multiple executive orders aimed to end federally funded diversity, equity, and inclusion efforts. The states said the termination notices came as NSF announced new funding priorities on April 18, which included that it would no longer support efforts to draw underrepresented populations into the STEM workforce.

The states, most of which have Democratic governors, say NSF’s priority shift contravenes decades of congressionally approved directives to encourage people from marginalized communities into STEM. They pointed in the complaint to dozens of sections of statutory language directing NSF to prioritize these representation goals.

The termination notices came without prior notice and contained “boilerplate language” that failed to allege any of the projects violated the law, the complaint says.

NSF also announced it wouldn’t be covering indirect costs higher than 15% of “modified total direct costs” any longer, the complaint says. These indirect costs cover many administrative functions such as custodial services and biological waste disposal, the states say. They allege this rate cap is “far below” the rates that universities have negotiated with the US, in violation of federal law and regulations.

The states allege the lack of notice and the rate cap constitute arbitrary and capricious moves under the APA and are contrary to federal law. NSF also is also exceeding its legal authority and violating the US Constitution’s separation of powers doctrine and take care clause, the states allege.

The states are represented by their respective attorneys general.

The case is New York v. Nat’l Sci. Foundation, S.D.N.Y., No. 1:25-cv-04452, complaint 5/28/25