2025 Federal Funding Pause

UPDATE: On Wednesday, Jan. 29, the White House Office of Management and Budget rescinded a memo that had previously announced a temporary pause to federal funding programs that “may be implicated by the executive orders” issued by President Trump. University leadership will continue to monitor this evolving situation and provide updates as needed. 

leaders in sponsored research, financial aid and grant-funded outreach programming across the University are actively reviewing evolving federal guidance following a Memorandum issued Monday, January 27 from the Office of Management and Budget (OMB) announcing a temporary pause to federal funding programs that “may be implicated by the executive orders” issued by President Trump. The situation is rapidly shifting, and, like most universities, we are working diligently to understand the potential short and long-term impacts to our students and our research and outreach.

Importantly:

  1. The U.S. Department of Education  late Tuesday, January 28, stating that the pause does not impact individual student aid such as Federal Pell Grants and Federal Direct Loans. Similarly, the U.S. Department of Veterans Affairs  that GI Bill payments will not be impacted.
  2. Also late Tuesday, a federal judge  on funding to existing programs, which was set to take effect at 5 p.m. the same day.

FAQs for Researchers:

What should I do right now? / How do I respond to the OMB memo?

For active awards that have funds obligated, continue your good work unless contacted by ORSP or Grants Accounting.  If you receive guidance from your sponsor, please contact ORSP.  It is important to understand that there have been pauses like this in the past.  The way this one was executed is quite different than in the past.  It is important for us to have a measured and intentional response.  Most importantly, we should do everything in our power to ensure that the good work that we do continues.

What does this mean for my current award?

Unless you receive specific guidance from an agency or from ORSP, your current activities should continue as planned.

Can I keep spending as usual?

Until such time you receive specific guidance from ORSP or Grants Accounting, your spending should continue as planned, following all normal policies and procedures.

I received a separate memo from my granting agency. What do I do?

If you receive specific guidance from agencies regarding your sponsored program's activity, or have specific questions, please contact orsp@ohio.edu. Work with ORSP to understand how it might affect you and review the terms and conditions of your award, the period of performance and the current funds obligated.  

Can we still submit proposals?

You should continue to pursue funding and prepare proposals for submission with the support of the Office of Research and Sponsored Programs (ORSP; contact orsp@ohio.edu). ORSP can provide specific information for specific proposals as it becomes available. The changing federal landscape may affect certain parts of proposals such as the “Broader Impacts” section of National Science Foundation proposals.  

How does this affect incoming subcontracts?

All incoming awards are subject to the pause. VPRCA recommends that DGM accounts not be established for new awards until the current situation resolves.

What does this mean for my new year of funding I expect soon?

It is important to understand the difference between funds obligated and period of performance.  The period of performance and total award (e.g., three years of funding) is often greater than the obligated funds (often incremental, e.g., 1 year).  At this time we should only spend obligated funds and not anticipated funds.  Hence, if you are waiting on a new obligation, you should not spend anticipated money until we receive a notice that obligates those funds.

What does this mean for my proposal that is in review?

For proposals under review, or awards that are pending, the pause will cause a delay in processing these proposals and awards and we must standby until the current situation resolves.

Does this pause mean that we will also not be allowed to spend any funds in addition to invoicing the agency?

Most sponsored programs work on a cost-reimbursement basis. At this time, the ability to be reimbursed has been limited (like what often happens when there is a government shutdown). The University can (and typically does) operate for a limited time before being reimbursed.  So, for a short time, we can continue to spend funds unless specifically not allowed to by the sponsor. In fact, we are most often obligated to continue the work unless we receive specific (and legal) guidance to not continue the work. The length of the delay will determine how long we can continue to operate with normal expenditures. As the delay continues, certain restrictions may be necessary. However, the goal of the University is to protect people and their funding as long as feasible.

How fast will there be a stop on the grant so no new charges can be processed and should be kicked out?

Only when a specific action is received by an agency, e.g., a “Stop work order” or an award termination, will the Division of Research and Creative Activity proceed to stop a grant. As of 1/29/2025 OHIO has received only one Stop work order.