Summary
- GAO says Trump froze $8 billion NIH funding illegally.
- Violated law by withholding Congress-approved money.
- NIH canceled 1,800+ grants, delayed awards.
- No lawful notice or justification provided.
- GAO may sue; lawmakers demand funding restored.
According to the GAO study, Trump's early-return orders and associated administrative directives violated the Impoundment Control Act by not allocating funds that Congress, which is constitutionally empowered to control the purse, had authorized.
The administration delayed about 1,800 health research funding, according to the report.
Funding for numerous health research grants pertaining to environmental damage, transgender concerns, diversity, equity, and inclusion was discontinued by Trump's Inauguration Day order. In a memo, the Department of Health and Human Services instructed all of its agencies, including NIH, to stop posting notifications of grant review board meetings in the Federal Register.
The sessions were described as "a key step in NIH's grant review process" by GAO, an independent investigative body that answers to Congress. Since then, HHS has resumed posting notices of the meetings.
According to the GAO, the NIH distributed $8 billion less from February to June than it had committed to over the previous two years, a decrease of more than one-third. According to GAO, the difference between 2025 spending and prior years' spending widened further, with NIH obligated to provide less award cash each month.
According to GAO, the Impoundment Control Act and the Constitution, which recognized Congress as the arm of government in charge of financial choices, were broken by the failure to finance grant awards.
If a law is passed by Congress and signed by a president, it must be carried out by the executive branch, the watchdog said.
“The President must ‘faithfully execute’ the law as Congress enacts it,”
the report said.
“Once enacted, an appropriation is a law like any other, and the President must implement it by ensuring that appropriated funds are obligated and expended prudently during their period of availability unless and until Congress enacts another law providing otherwise. … The Constitution grants the President no unilateral authority to withhold funds from obligation.”
A rescissions bill, like the one Congress passed last month to defund foreign aid and public broadcasters, is one example of a situation that permits a funding freeze, but the GAO stated that these conditions did not apply in this instance.
A new presidential administration may be able to guarantee that grants are given according to its goals by allowing delays. However, the GAO stated that a total financial ban is unlawful. According to the report, there is no proof that the $8 billion in unused grant funds were replaced by other grant awards or any other kind of financing at HHS.
How did the GAO determine the Trump administration violated the Impoundment Control Act?
The Impoundment Control Act mandates that the President or executive agencies must notify Congress via a special message about any delay (deferral) or cancellation (rescission) of appropriated funds, providing justifications. The Trump administration did not submit such notifications to Congress regarding the NIH funds.
Between February and June 2025, NIH obligated almost $8 billion less toward awards compared to the same period in 2024, and over 1,800 NIH grants were terminated prematurely, indicating a clear reduction in spending.
Publicly available evidence, including NIH and HHS data showing reduced obligations and expenditures, proved the administration withheld funds intentionally to comply with executive orders aiming to pause or cancel certain grants.