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Federal Funding Updates

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As the federal landscape continues to evolve, we are working to navigate these changes and share information and updates with the campus research community. The University of Maryland remains committed to our mission and to maintaining a supportive environment for all members of our community. We will continue to update this page regularly and provide new information about federal impacts to research as it become available.

Also see: UMD Federal Relations Updates and Guidance

News and Updates

Awards
  • How should we proceed with current awards?
    Continue with award activities and business as usual, unless the Office of Research Administration (ORA) receives a notification regarding a change in the award status. Your ORA Contract Administrator will contact you if this happens.
     
  • What if a stop-work order is issued?
    Federal funding agencies have issued stop-work orders and terminations for certain grants and contracts in response to federal executive orders and presidential actions. Please continue with business as usual unless ORA receives a stop-work order or termination notice for your specific project or award.  Do not stop work based on rumors. Agencies are required to notify us (through ORA) if there will be changes to your funding once the award  is in place. If you receive a stop-work order or termination for a specific project or award, please immediately forward the notification to your ORA Contract Administrator, with a cc: to your Department Chair and Associate Dean for Research. ORA will work with you to determine the next steps to ensure compliance.
     
  • What should we monitor regarding current award expenditures?
    Check with your unit business office on your rate of expenditure and end date for current  awards. This is particularly important for awards that are close to expected renewal dates. Closely monitor obligated budget balances to avoid deficits while awaiting future obligations. 

     
  • What details should be reviewed in award agreements?
    Review the funding agreement, including the terms, and especially clauses related to funding availability and reimbursement. Pay careful attention to reports and deliverables, and be sure to submit any technical reports or deliverables that may be past due. Check with your ORA Contract Manager if you have questions related to award terms.
     
  • How can we stay up to date regarding changes in compliance requirements?
    There may be updates to research compliance requirements and/or reporting requirements for awards. These changes could be made on a broad federal agency or sponsor level or on a project-by-project basis. Monitor announcements from the federal agency that funded the work for any updates on funding or compliance requirements. Instructions may also come directly to grantees from program officers; if you receive any instructions directly from federal program officers, please contact ORA. It will be important to act swiftly to ensure compliance with any new requirements but new compliance activities must be coordinated by the appropriate and authorized UMD offices to ensure that UMD also remains compliant with existing federal laws, regulations, and award terms and conditions. The Division of Research will share any information communicated by federal agencies. 
     
  • What can be expected about pending or future funding?
    Anticipate that future funding remains subject to availability of funds and should not be considered guaranteed.
     
  • What if specific programs are terminated or restructured?
    If specific programs are terminated or restructured, grantees may encounter difficulties accessing funds or meeting new criteria. Federal agencies managing these programs will typically issue guidance on how to proceed. If a program or initiative is reduced or defunded, there could be delays or pauses in payments for existing agreements under those programs. The Division of Research will promptly pass along any notifications if and when they are received.
  • Are we still able to submit proposals for federal funding?
    The university will continue to submit proposals for federal funding as long as the federal agencies’ submission systems are operational and agencies are accepting proposals. 
     
  • Should we anticipate delays in the review process?
    Sponsor proposal review timelines may be extended while federal agencies navigate changes and pauses in funding in specific areas, shutdowns of study sessions and review panels, pauses in communications, etc.
     
  • What should we look out for in current and future funding opportunities?
    Pay close attention to the funding opportunity announcement and any subsequent amendments. There may be changes to proposal deadlines. Be sure to reconfirm the deadline. Confirm that the funding announcement has not been revised or postponed. 
     
  • How can I stay apprised of federal agency updates?
    Consider signing up for alerts from the federal agency or sponsor. Check with your Office of Research Administration (ORA) Contract Manager if you have questions.

 

NIH Indirect Cost Guidance

NIH issued NOT-OD-25-068 on 2/7/25. This notice reduces the F&A rate that NIH is willing to pay to 15%, effective 2/10/25. The rate reduction applies to both new and existing NIH awards.

The university is seeking more detail about the legitimacy of this policy change. Among other things, this rate change appears to be inconsistent with the annual appropriations bill. In light of these complexities, we are hoping that NIH can be convinced to reverse this change.

While this process plays out, UMD is taking the following actions:

  • Proposal submissions. UMD has not agreed to waive F&A on NIH awards. Until such time as we receive further guidance from university leadership, all proposals must be submitted in accordance with UMD’s appropriate negotiated (full) F&A rate. Proposals may NOT be submitted at 15%. (Non-standard proposals such as fellowship grants can continue to be submitted in accordance with previously existing guidance.)
     
  • New awards. The Office of Research Administration has not been authorized to accept NIH awards at 15%. If we receive new awards that reference the 15% F&A rate, such awards will be placed on hold until such time as this issue is resolved. The same is true of any NIH flow-through awards we receive from other institutions that reference the 15% rate.
     
  • Expenditures on new awards. PIs are not authorized to spend against any new award that references the 15% rate. That means no pre-award costs or advanced accounts. Please also note that PIs cannot spend against some other account while waiting for this issue to be resolved. “Parking” costs on one grant while waiting for another grant to come in is a form of fraud.
     
  • Rebudgeting existing awards. Please do not re-budget costs from indirect to direct in anticipation of an F&A rate reduction. Burdening will continue at our negotiated (full) F&A rate until further notice.
     
  • No-cost extensions. As many of you have noted, the automatic NCE link in eRA Commons has been deactivated. We have not yet received any official explanation from NIH regarding why this is the case. But there is a very real possibility that NIH will no longer allow us to take a one-time automatic no-cost extension at the end of our period of performance. PIs should not assume that no-cost extension requests will be approved.  
     
  • Reimbursement. Sponsored Programs Accounting has not been authorized to draw down funds from NIH at the 15% rate. This may delay reimbursement of NIH grants until this issue is resolved.

This guidance may change frequently in the coming days and weeks as we learn more.

 

More questions? Contact: researchupdates@umd.edu

February 28, 2025

Dear UMD Faculty and Staff,

As the federal landscape continues to evolve, we recognize that uncertainty exists regarding potential impacts to our university, and we are working to navigate the changes in a way that is consistent with our mission and values.

Our campus leaders are meeting regularly to monitor these changes, understand the circumstances and strategize measures to mitigate potential disruptions to our campus operations and community. We consult regularly with government officials, leaders at the National Academies, our Big Ten peers, higher education associations such as AAU, APLU and ACE, legal experts and other key partners.

Because the spread of unconfirmed information can create confusion, we urge you to refer to official sources when gathering facts and guidance. Trusted and confirmed information can be found on our Federal Updates webpage, which we update regularly.

We recognize that recent federal actions have led to disruptions in research and other sponsored activities. Many of these actions are rapidly changing and have been challenged in federal courts, sometimes with involvement from the Maryland Office of the Attorney General. We are working with multiple partners to determine what these actions mean and navigate them in a way that supports our mission and community. We will continue to provide detailed information about research at research.umd.edu/federalupdates.

We also understand that members of our community may have family members affected by recent federal changes. The Office of Governor Wes Moore has established a webpage highlighting resources to help all impacted federal workers and public servants.

The University of Maryland remains committed to our mission and to maintaining a supportive environment for all members of our community. We are in regular communication with vice presidents, deans and other leaders so that they may provide guidance within the context of each school, college and division.

Thank you for all you do to help create a caring community for our faculty, staff and students.

Sincerely,

Darryll J. Pines
President, University of Maryland
He/Him/His
 

Jennifer King Rice
Senior Vice President and Provost
She/Her/Hers

Dear Colleagues,

At the University of Maryland, we achieve excellence in all we do, from research and teaching to student support and public service. We are grateful to work shoulder to shoulder with faculty and staff who contribute to our mission every day.

Over the past several weeks, we have seen a number of changes in the federal landscape that impact our daily lives. It is important that you know we are working closely with the University System of Maryland and the State of Maryland, our congressional delegation, as well as our colleagues at the Association of Public and Land-grant Universities (APLU), the Association of American Universities (AAU) and the American Council on Education (ACE) to understand and navigate the potential impacts on our university community. There is still much to learn, and we are meeting regularly to determine next steps.

Resources
To help our community navigate the changing landscape, we have created a new Federal Relations web page that provides current information regarding federal executive orders, memos and agency guidance that are relevant to higher education. It also includes resources and guidance from UMD leadership and additional higher education organizations.

The Division of Research is providing regular updates to evolving modifications to federal research funding and is eager to connect with faculty to understand changes to grants and work orders. Our International Students & Scholars office is available to assist our international community.

What's next
We understand that there is uncertainty within our community on how federal changes may impact you in your work, as well as you as individuals. We are meeting on a regular basis with the deans and campus leadership to understand how these changes are affecting our campus community and to navigate our path forward. Through the federal relations websites and communications from your vice presidents, deans, department chairs and supervisors, we will work to keep you informed with verified information and guidance.

We remain proud to be one of the leading institutions of higher education in the country. We will continue to carry out our mission in ways that reflect our shared values. We will continue on our path to excellence so that our research, scholarship, teaching and work will continue to have a positive and meaningful impact on our communities, state, nation and world.

Thank you for your partnership and commitment to our Terrapin community.

Sincerely,

Darryll J. Pines
President, University of Maryland
He/Him/His

Jennifer King Rice
Senior Vice President and Provost
She/Her/Hers

Dear Colleagues,

Many of you are likely aware of a notification from the National Institutes of Health that went out Friday evening detailing changes to the agency's indirect cost rates on federal grants. I want you to know that the university is working closely with other schools in the University System of Maryland, as well as the Association of Public and Land-grant Universities (APLU) and the Association of American Universities (AAU), to communicate about the profound negative impact this will have on universities and to oppose the measure from moving forward.

We will continue to provide information to our research community as this situation unfolds. Please refer to the federal updates webpage for further guidance on this and other recent developments.

Thank you for all you do to support the University of Maryland research enterprise.

Sincerely,

Gregory F. Ball
Vice President for Research
He/Him/His

Dear Colleagues,

Like you, we continue to follow the new administration’s actions regarding federal funding. Questions remain about the potential impacts on our university, but we are working with other universities, government agencies and organizations to understand this evolving situation.

Be assured that we are committed to supporting your career and educational goals.

Our advice to you is to proceed with your research and other sponsored activities as usual unless you receive an order or communication from a federal sponsor or the university to stop or modify your work, and to apply for grants as you normally would. If you receive directives or guidance directly from a sponsoring federal agency, please notify the Office of Research Administration (ORA).

Questions about research awards and other sponsored projects should be directed to your ORA representative.

We continue to provide additional information with regular updates at research.umd.edu/federalupdates. Please feel free to forward this email to any faculty or staff coming to you with questions on this matter.

Sincerely,

Gregory F. Ball
Vice President for Research
He/Him/His

Dear Colleagues,

There have been many recent developments that will impact federally funded university activities. As we monitor this evolving situation closely, we wanted to share the following information and resources with the campus research community.

Pursuant to an Office of Management and Budget (OMB) memo issued late last night, the federal government has temporarily paused reimbursements and other payments made under federally funded grants and cooperative agreements beginning at 5 pm Eastern Time today, January 28, 2025.

OMB issued further guidance this afternoon stating that “any program not implicated by the President’s Executive Orders is not subject to the pause,” and additional details can be found in the memo. Questions remain about what federal grants could potentially be affected, but federal contracts are currently unaffected by this funding pause. The university, along with organizations like the Association of American Universities (AAU) and the Association of Public and Land-Grant Universities (APLU), are working to assess additional impacts.

The university has not received overarching stop-work orders or suspension notices. Work on grants and cooperative agreements should continue as required by the award document unless the Office of Research Administration (ORA) has provided other guidance.

Questions about research awards and other sponsored projects should be directed to ORA. The university has also established a webpage where we will provide additional information at research.umd.edu/federalupdates. This site will be updated with additional guidance and information as it becomes available.

Sincerely,

Gregory F. Ball
Vice President for Research
He/Him/His

  • February 3, 2025:
    Message to the NSF PI Community:

    Dear Colleagues:

    On Friday, January 31, 2025, a Federal Court issued a Temporary Restraining Order (TRO) directing Federal grant-making agencies, including the National Science Foundation (NSF), to “...not pause, freeze, impede, block, cancel, or terminate... awards and obligations to provide federal financial assistance to the States, and... not impede the States’ access to such awards and obligations, except on the basis of the applicable authorizing statutes, regulations, and terms.” Although the language of the TRO is directed at State institutions, the Department of Justice has determined that it applies to all NSF award recipients. You can review the TRO here.  

    In order to comply with the TRO, the NSF Award Cash Management Service (ACM$) system is available for awardees to request payments as of 12:00pm EST, February 2, 2025. 


    This message is also available on the Executive Order Implementation webpage. Please check back regularly as we add frequently asked questions (FAQs) based on community feedback.


    Sethuraman Panchanathan

    Director
     

  • January 28, 2025:
    NSF Implementation of Recent Executive Orders: Message to the NSF Principal Investigator Community
  • January 29, 2025:
    The Secretary of Transportation has ordered a ten-day review of all DOT programs that are implicated by the recent executive orders related to climate change, greenhouse gas emissions, racial equity, gender identity, DEI goals, environmental justice, or the Justice40 initiative. Following the review, the Department will, to the greatest extent allowed by law, terminate DOT programs—including funding agreements—found to be implicated by the orders.
  • January 27, 2025:
    The U.S. Department of Agriculture (USDA) has implemented an immediate suspension of all USDA actions related to funding opportunities, including Partnerships for Climate-Smart Commodities funding. The freeze does not apply to no-cost extensions or no-cost modifications. The National Institute of Food and Agriculture (NIFA) has removed all FY25 requests for applications (RFAs) from their website, removed all submission deadlines from their calendar, and removed open packages from grants.gov. A notice is currently posted on the NIFA website that states: “All NIFA Requests for Applications are currently under review. Check back for updates or subscribe to NIFA Funding Opportunities for email updates as they happen.”
  • February 10, 2025:
    The National Endowment for the Arts has updated its FY 2026 grant guidelines, with deadlines in March and July 2025. These changes impact organizations applying in the Grants for Arts Projects or Challenge America categories. A webinar covering the updated Grants for Arts Projects guidelines will take place on Tuesday, February 18, 2025, at 2:00 p.m. ET. (Free to attend; however, registration is required. A recording will be posted shortly after the presentation in the Applicant Resources section of the Grants for Arts Projects webpage.) 

    The Challenge America opportunity is canceled for FY 2026. Organizations that have applied or were planning to apply to the FY 2026 Challenge America grant opportunity are encouraged to apply to the Grants for Arts Projects category at the March or July deadlines instead. This change will help NEA staff focus resources more efficiently in their work. 
    NOTE: Projects funded through the Challenge America program are also eligible in Grants for Arts Projects. If you are planning an Artist Community or Design program, be aware that applications for these disciplines are accepted at the March Grants for Arts Projects deadline only.

    The National Endowment for the Arts has revised the FY 2026 Grants for Arts Projects guidelines. A set of Frequently Asked Questions addressing the changes is available in the guidelines.

    As part of these changes, the February 13, 2025, Grants for Arts Projects deadline has been canceled. The FY 2026 deadlines are now March 11, 2025, for GAP 1 and July 10, 2025, for GAP 2. Organizations that have already submitted an application must submit a new application under one of these deadlines.
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