The U.S. Government Accountability Office (GAO) revealed on Tuesday that President Donald Trump’s decision to freeze $8 billion allocated to the National Institutes of Health (NIH) was unlawful.

According to the GAO report, Trump failed to spend the funds approved by Congress, violating the Water Storage Control Act, which designates Congress as the authority over government spending. This freeze notably affected around 1,800 health research grants.

On Inauguration Day, Trump issued an order halting funding for a range of grants connected to issues like diversity, equity and inclusion, and environmental damage. The Department of Health and Human Services (HHS) also directed agencies, including the NIH, to cease public notifications regarding grant reviews.

The GAO, which independently reports to Congress, characterized these meetings as essential to the NIH grant review process. HHS has since resumed sending notifications about these meetings.

From February through June, the NIH reportedly released $8 billion less than what it was required to over the past two years. The gap in spending between 2025 and previous years continues to increase, indicating a trend of reduced funding needs from the NIH each month.

Illegal Restrictions

The GAO stated that withholding grant funds constituted a violation of constitutional provisions that acknowledge Congress as the entity responsible for financial decisions.

If Congress passes a law and the president approves it, the administration is obligated to enforce it, as the GAO notes. “The president must ensure the law is followed as enacted, and the budget, once approved, should be treated like any other law, carefully mandated, and appropriately allocated unless Congress revises it,” the report indicated.

While certain instances allow for funding freezes, the GAO argued that this particular case did not qualify. They pointed out that it’s common for new administrations to prioritize grants differently, but a complete halt on funding is illegal. The report noted there’s no evidence of other types of funding compensating for the $8 billion that was withheld.

The GAO stated, “While NIH may have reviewed the grants to ensure alignment with new priorities, it didn’t merely delay obligations; it completely terminated already-awarded grants.”

Following its findings, the GAO has the authority to take legal action against the administrative agency involved. The report also mentioned ongoing lawsuits from various parties concerning the funding freeze.

Democrat Response

In response to the GAO’s findings, congressional Democrats sharply criticized Trump as well as the White House management and the budget director, urging for the funds to be released. Patty Murray, a Democratic senator from Washington, emphasized that the NIH funding was essential for vital research on diseases impacting millions, asserting that the decision to withhold money was irresponsible.

“Today’s ruling confirms what we’ve suspected for months. President Trump has illegally blocked funding for medical research, jeopardizing the hopes of patients nationwide reliant on NIH-backed innovations that can save lives,” Murray commented, urging for the course to be reversed.

An HHS spokesperson deferred comments on the matter to the Office of Management and Budget (OMB) on Tuesday.

Typically, organizations examined by the GAO receive a draft of the findings and can respond. The HHS response, while acknowledging the resumption of grant reviews, did not specifically address the obligations of previously awarded grants.

According to a summary of the HHS response from the GAO, although the agency indicated it’s behind on peer review schedules, it is working to catch up from previous delays.