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Federal Funding Updates

UPDATE 02/10/25

Temporary Restraining Order on NIH IDC cap

On February 10, a federal district court judge temporarily blocked the Trump administration from reducing health research grants. This is based on a lawsuit filed in the U.S. District Court for the District of Massachusetts. In this lawsuit, the attorneys general of 22 states argued that NIH’s abrupt decision to set a 15% cap on payments for facilities and administrative costs (F&A) linked to research would cause major harm to institution budgets, jeopardizing critical operations and medical research. As the State of California is a party to this lawsuit, California state entities including the UC system are temporarily protected from this reduction.

UPDATE 02/07/25

The UC Office of the President has created a website that shares UC’s approach to the executive orders and other changes in the federal landscape. 

UC ANR campus leadership and Office of Contracts and Grants team are monitoring these changes carefully. We will update this web page as additional information is available.

Update 02/03/25

A temporary restraining order has been filed, stating that the administration cannot “pause, freeze, impede, block, cancel, or terminate” its obligations to provide federal financial assistance, “except on the basis of the applicable authorizing statutes, regulations, and terms.” As of 2/3/25, ACM$, ASAP, and other federal payment systems are back online. Under this temporary restraining order, the judge affirms that any further award actions must follow the notice and procedural terms of each award. We expect further guidance, as the litigation is ongoing.

Update 01/28/25

As outlined in the recent message by President Drake and the message from UC President of Research and Innovation Theresa Maldonado, the last week has brought significant uncertainty in the research community, as a combination of Executive Orders and agency directives have impacts on grant funding. 

On Jan. 27, the federal Office of Management and Budget (OMB) sent a memo to federal departments and agencies putting a temporary pause on federal grants, loans, and other financial assistance programs effective 2 p.m. PT/5 p.m. ET Jan. 28. On Jan. 28, OMB issued additional guidance clarifying that the only programs subject to the pause are those related to the listed presidential executive orders. On Jan. 29, following an administrative stay by a federal judge, the administration rescinded the OMB Memo, but did not unfreeze payment systems.

Many federal agencies are updating their policies and sponsored funding solicitations due to White House Executive Orders and transition within agencies. Some agencies have been providing updates, though there is some lack of clarity on implementation and how these changes affect our work. If you have specific questions, please reach out to ocg@ucanr.edu. 

It is not unheard of for federal agencies to delay program deadlines and pause funding decisions when there is an administration change, to ensure that agency programs are aligned with administration policy. 

UC ANR campus leadership and the Office of Contracts and Grants are monitoring these changes carefully. We will update this web page as additional information is available.

The Council on Governmental Relations (COGR) has developed a resource page that compiles recent Executive Orders, agency directives, and other information that is relevant to upcoming and existing federal contracts and grants. See: 2025 Administration Transition Information & Resources.

The following recommendations are based on the latest information available to us.  We will update as new information becomes available.

Pre-Proposals and Pre-Award:

  • Proposals may be submitted to available federal funding opportunities as long as federal submission systems remain operational.
  • Principal investigators and proposal administrators should review the funding announcements for in-progress proposals to confirm that they have not been revised or postponed. There have been examples where announcements have been revised for required elements and submission dates.
  • As new versions of existing Notices of Funding Opportunities (NOFOs) are released, please read carefully. While NOFOs often make explicit the changes that occur with a reissue, not all changes in the wording may be highlighted. Please consult with the appropriate Program Officer if needed.
  • Award decisions, study sections, and other grant review processes may be delayed, so monitor program websites and FAQs for any news.

Existing awards:

  • Continue to work on your grants and contracts unless you are notified directly by the agency or Office of Contracts and Grants. Do not stop work only on the basis of rumor or internal agency guidance. Agencies are required to notify UC ANR’s authorized official directly if there will be changes to your funding once the agreement is in place.
  • Allowable expenses already incurred or encumbered prior to any notice are still reimbursable in accordance with the terms of our awards. Though the payments may be paused briefly, we expect these funds will be reimbursed.
  • If PIs receive any award modifications or other agency communications, including “Stop-Work” or “Termination” orders, please forward them to Office of Contracts and Grants as soon as possible at ocg@ucanr.edu so that these can be reviewed and processed quickly to alert all necessary parties.
  • Notices of new, continuing or supplemental funding will potentially be delayed
  • Awards currently under negotiation may be placed on hold until further notice by the funding agency.
  • Try to remain in contact with your program officers but also be aware that some may have a pause on communications.
  • Closely monitor obligated budget balances to avoid deficits while awaiting future obligations. Anticipated funding remains subject to availability of funds and should not be considered guaranteed.
  • Continue to meet existing deadlines for technical reports or other deliverables.