Page updated April 8, 2026: Updated Research reimbursement rates section with information on FY2027 budget proposal
We remain highly concerned and are closely monitoring potential changes to how federal grants may be awarded, administered, amended and/or discontinued.
Partial federal government shutdown
Funding for the Department of Homeland Security ended on Feb. 13, 2026, resulting in nonessential programs in that department shutting down until an appropriations bill is passed and signed into law. Since , the shut down is expected to have limited effects on the University.
Research reimbursement rates
Appropriations bills enacted for FY2026, which ends Sept. 30, 2026, These provisions are a response to various attempts by the administration to impose 15% caps on reimbursements of the Facilities and Administration (F&A) costs through which universities, hospitals and research centers recover expenses incurred while conducting federally sponsored research on behalf of the American people.
The bills’ language also encourages the administration to pursue the (FAIR) model that has been proposed by several national associations. The 91探花has been an active participant in the development of the FAIR model.
The administration’s proposed FY2027 budget includes a 15% F&A cap for the National Institutes of Health. There is also the potential for the administration to pursue its own F&A proposal via changes to Uniform Guidance regulations. The 91探花and its partners will continue to pursue the adoption of the FAIR model by the administration and with the support of Congress.
Previous updates
On Feb. 7, 2025, which are the Facilities and Administration (F&A) costs through which universities, hospitals and research centers recover expenses incurred while conducting research. These costs can be complex to calculate and include lab infrastructure, utilities, communications platforms, IT support, building maintenance, HR and payroll services, compliance officers, reporting officers and purchasing departments, among other necessities that are vital to conducting research.
We partnered with the Washington Attorney General鈥檚 Office to support the lawsuit filed Feb. 10, 2025, in the U.S. District Court for Massachusetts. That same day, . On March 6, 2025, the judge extended the prohibition on implementing that cap , which blocks implementation while the lawsuit is in process, and in April 2025 permanently barred the rate change. On Jan. 5, 2026, a unanimous ruling by the lower court’s ruling. The federal government had until April 6, 2026 to appeal this to the U.S. Supreme Court. It did not do so, and as a result the First Circuit’s ruling stands.
An April 11, 2025, action by the Department of Energy to lower its rate to 15% was also challenged and . That judge on June 30, 2025, issued however the government appealed the ruling. On January 27, 2026, that its policy attempting to lower the rate was no longer in effect due to language in the FY26 appropriations bill for the Department of Energy. It later withdrew its appeal of the lower court ruling that blocked the lowering of the rate. , leaving the lower court’s ruling in effect.
On May 2, 2025, the National Science Foundation on indirect cost reimbursements for new awards, a policy which , 2025. The government subsequently , and on June 20, 2025, and struck it down. On Sept. 26, 2025, the administration filed a motion to dismiss its appeal, which the plaintiffs are not opposing and which, if approved by the court, would mean the judge’s ruling would stand.
The of its plan to implement a 15% cap. This action is by a group of associations and universities, including the UW. It was with that being extended on July 18, 2025, which only applies to parties to the lawsuit. On Dec. 9, 2025, the federal government appealed that injunction, however on Feb. 10, 2026, it moved to drop its appeal of that ruling in light of language in the FY2026 appropriations bill for the department.
NIH restrictions on fetal tissue research
On Jan. 22, 2026, the National Institutes of Health (NIH) announced that federal funds could be . Additionally, on Jan. 23, NIH announced a聽聽to their registry (which is the list of cell lines allowed for use with NIH funding). NIH is holding a Request for Information period through April 2026 to determine whether biotechnologies can reduce or replace human embryonic stem cell use. These actions will make it more difficult to study stem cell biology and fetal development that are important to medical advances in many areas of research.
Grant awards
A hold on the National Institutes of Health posting required notices in the Federal Register affected the agency鈥檚 ability to award new grants and issue additional funding for ongoing grants for at least several weeks during the winter. This was partially lifted in late February and some review meetings and other meetings necessary for the awarding of grants were also paused until early April. There are ongoing reviews by federal agencies of specific grants that may result in grant pauses or cancellations, and other policies that are slowing the issuance of awards. New NIH awards for the current federal fiscal year (FY25) are running 30-40% below their normal level for year-to-date funding compared to the same time in FY24.
The cancellation of certain NIH grants related to vaccine hesitancy, diversity, equity and inclusion, and LGBTQ+ health care was . On August 21, 2025, , with a 5-4 majority saying the grant recipients had filed their cases in the wrong court since they filed in district court and not the . At the same time, a different 5-4 majority of the court ruled that the underlying administration policy used to justify the cuts was likely unlawful and challenges to that policy could proceed in the lower courts and that attempts to restore grants cancelled under that policy could proceed in the Court of Federal Claims.
Meanwhile, the cancellation of grants by the National Science Foundation, which was challenged by a multi-state group including Washington, will be allowed to continue after as the case proceeds.
There was also a broader freeze on federal disbursements issued by the Office of Management and Budget (OMB) on Jan. 27. That OMB order was rescinded by the administration on Jan. 29, 2025, and is also the subject of two federal court orders, one of which was
Finally, on Aug. 7, 2025, directing all agencies that issue grants to create a process by which a political appointee will approve all grant opportunities before they are issued and approve all grants before they are awarded. Grant opportunities are not permitted to be posted by an agency until such a process is in place. It also directs agencies on what sorts of grants should not be issued and that preference should be given to institutions with lower indirect cost rates, among other provisions.
Resources
Even with these court actions, pauses and stop work orders on some grants are impacting employees and operations. This includes instances in which the 91探花has received a sub-award and the state, agency or institution that is the primary award recipient is choosing to suspend or stop work. The Office of Research, 91探花Human Resources, Attorney General鈥檚 Office and other offices are working directly with relevant unit heads, principal investigators and staff.