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In his ruling, Cronan said he would not grant the preliminary injunction in part because it may be that another court, the Court of Federal Claims, has jurisdiction over what is essentially a case about money. He also said the states failed to show that NSF’s actions were counter to the agency's mandate.

The lawsuit filed in May alleges that the National Science Foundation's new grant-funding priorities as well as a cap on what's known as indirect research expenses “violate the law and jeopardize America’s longstanding global leadership in STEM.�

Another district court had already blocked the the cap on indirect costs — administrative expenses that allow research to get done like paying support staff and maintaining equipment. This injunction had been requested to restore funding to the grants that were cut.

In April, the NSF announced a new set of priorities and began axing hundreds of grants for research focused on things like misinformation and diversity, equity and inclusion. Researchers who lost funding also were studying artificial intelligence, post-traumatic stress disorder in veterans, STEM education for K-12 students and more.

Researchers were not given a specific explanation for why their grants were canceled, attorney Colleen Faherty, representing the state of New York, said during last month's hearing. Instead, they received boilerplate language stating that their work “no longer effectuates the program goals or agency priorities."

NSF has long been directed by Congress to encourage underrepresented groups like women and people with disabilities to participate in STEM. According to the lawsuit, the science foundation's funding cuts already halted efforts to train the next generation of scientists in fields like computer science, math and environmental science.

A lawyer for the NSF said at the hearing that the agency has the authority to fund whatever research it deems necessary — and has since its inception in 1950. In the court filing, the government also argued that its current priorities were to “create opportunities for all Americans everywhere� and “not preference some groups at the expense of others, or directly/indirectly exclude individuals or groups.�

The plaintiff states are trying to “substitute their own judgement for the judgement of the agency," Adam Gitlin, an attorney for the NSF, said during the hearing.

The science foundation is still funding some projects related to expanding representation in STEM, Cronan wrote in his ruling. Per the lawsuit filed in May, for example, the University of Northern Colorado lost funding for only one of its nine programs focused on increasing participation of underrepresented groups in STEM fields.

The states are reviewing the decision, according to spokespeople from the New York and Hawaii attorney general offices. The National Science Foundation declined to comment.

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