The National Institutes of Health (NIH), a federal agency that regulates medical research in the United States, published a memorandum on Monday that conditions research grants on not boycotting Israel and eliminating all DEI (Diversity, Equity, and Inclusion) programs.
According to the memorandum, the agency "reserves the right to cancel financial aid and return all funds" if grant recipients do not comply with federal guidelines prohibiting diversity and equality research and "forbidden boycotts."
The memorandum defines a "discriminatory forbidden boycott" as "refusing to engage, severing commercial relations, or restricting commercial relationships specifically with Israeli companies or with companies conducting business in Israel or with Israel, or those authorized, licensed, or incorporated under Israeli law." According to the announcement, "By accepting the grant, recipients confirm that they are not engaged in and will not engage in a discriminatory forbidden boycott during the grant period."

The new policy will apply to "local recipients of new grants, renewals, additions, or continuations" issued from April 21, as stated in the announcement.
The NIH is the world's largest public funder of medical research. It awards approximately 60,000 grants annually to nearly 3,000 universities and hospitals. More than 80% of its annual budget of $48 billion is directed toward these research grants.
The battle against DEI programs, which the Trump administration views as discriminatory, along with the fight against anti-Israeli demonstrations and actions, is also driving the American administration's recent moves against elite universities in the US. Officially, boycotting Israel in American institutions is not widespread, but anti-Israeli student associations and faculty lead petitions and calls to boycott Israel. Some institutions accepted some of these students' demands during the wave of anti-Israeli protests throughout the war.
Harvard University recently decided not to comply with the administration's demands, which could cause the university to lose $9 billion in grants and other financial transfers. The university responded yesterday with a lawsuit against the administration.
In a letter to the Harvard community, university president Alan Garber argued that the administration's recent escalation against the prestigious institution "has serious real-world implications for patients, students, faculty, staff, researchers, and the status of American higher education in the world."
Credit rating agencies have warned that the administration's actions could lead to damage to the financial strength of these institutions, which hold enormous budgets.