Important Links:
April 14, 2025: Federal Court Case: APLU, AAU, & ACE Legal Challenge to Cuts to Critical Energy Research
April 11, 2025: Department of Energy Announcement: Department of Energy Overhauls Policy for College and University Research, Saving $405 Million Annually for American Taxpayers
April 4, 2025: Supreme Court Ruling: U.S. Supreme Court Overturns Lower Court Decision and Permits Termination of Teacher Training Grants
April 4, 2025: Federal Court Case: 16 State Attorneys General File Lawsuit Against the NIH and DHHS
March 27, 2025: Executive Order: Restoring Truth and Sanity to American History
March 10, 2025: Federal Court Ruling: U.S. District Judge Myong J. Joun Issues Temporary Restraining Order Preventing the Termination of Teacher Training Grants
March 6, 2025: Federal Court Ruling: U.S. District Judge John J. McConnell, Jr. Grants Preliminary Injunction Indefinitely Preventing the Freezing of Federal Funds
March 5, 2025: Supreme Court Emergency Ruling: U.S. Supreme Court Upholds Lower Court's Decision to Compel Foreign Aid Payments
February 27, 2025: Executive Order: Implementing the President's "Department of Government Efficiency" Cost Efficiency Initiative
February 25, 2025: Federal Court Ruling: U.S. District Judge Loren L. AliKhan Extends the Temporary Restraining Order Preventing the Pause on Federal Spending
February 21, 2025: Federal Court Ruling: U.S. District Judge Angel Kelley Extends Temporary Restraining Order Preventing NIH Indirect Cost Rate Change
February 17, 2025: ED Memo: U.S. Department of Education Cuts Over $600 Million in Divisive Teacher Training Grants
February 13, 2025: Federal Court Ruling: U.S. District Judge Amir Ali Issues Temporary Restraining Order Preventing Freeze on Foreign Aid Payments
February 10, 2025: Federal Court Ruling: U.S. District Judge Angel Kelley Issues Temporary Restraining Order Preventing NIH Indirect Cost Rate Change
February 10, 2025: Complaint for Declaratory and Injunctive Relief Filed in Federal Court in Response to Feb. 7 NIH Notice
February 7, 2025: NIH Notice: Supplemental Guidance to the 2024 NIH Grants Policy Statement: Indirect Cost Rates
January 31, 2025: Federal Court Ruling: U.S. District Judge John J. McConnell, Jr. Issues Temporary Restraining Order Preventing the Pause of Federal Spending
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January 29, 2025:
OMB Memo: Rescission of M-25-13 Temporary Pause of Agency Grant, Loan,
and Other Financial Assistance
January 28, 2025: Federal Court Ruling: U.S. District Judge Loren L. AliKhan Issues Temporary Stay on the Pause of Federal Spending
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January 28, 2025:
OMB Memo: Clarification Regarding Temporary Pause of Agency Grant,
Loan, and Other Financial Assistance
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January 27, 2025:
OMB Memo: Temporary Pause of Agency Grant, Loan, and Other Financial
Assistance
January 21, 2025: HHS Memo: Immediate Pause on Issuing Documents and Public Communication
January 20, 2025: Executive Order: Reevaluating and Realigning United States Foreign Aid
Additional Information:
On January 20, the administration issued an executive order titled "Reevaluating and Realigning United States Foreign Aid." The order issues a 90 day pause on disbursements for foreign aid programs and could have an impact on certain research. On February 13, a federal judge in the District of Columbia issued a temporary restraining order (TRO) preventing the pause on disbursements for work completed on the government's behalf prior to that date, and on February 25, the same judge denied the administration's motion to stay the TRO and set a payment deadline of February 26. On February 26, Chief Justice of the United States John Roberts paused the TRO to allow the Supreme Court time to review the administration's request to lift it. On March 5, the United States Supreme Court issued a decision upholding the lower court's order requiring the disbursement of funds.
On January 21, the U.S. Department of Health and Human Services (HHS) issued a memo pausing public communications from all HHS agencies—including the CDC, FDA and NIH—and subsequently instructed staff to suspend all work-related travel and grant reviews. On February 4, HHS issued internal guidance and procedures allowing certain external communications, travel and grant reviews to resume.
On January 27, the White House Office of Management and Budget (OMB) issued a memo directing federal agencies to temporarily pause all activities related to federal financial assistance or that may be implicated by recent executive orders. On January 29, a federal judge in the District of Columbia issued a temporary stay on the memo (this stay was continued on February 25). OMB rescinded the memo the same day but continued to pause certain federal financial assistance. On January 31, another federal judge in Rhode Island granted a temporary restraining order (TRO) blocking the administration from freezing federal loans, grants and other financial assistance. On February 10, that federal judge reinforced the TRO and ordered the administration to immediately restore frozen funding in response to claims that federal agencies continue to improperly freeze federal funds, and on March 6, the same judge granted a preliminary injunction that prevents the freezing of federal funds indefinitely.
On February 7, the National Institutes of Health (NIH) issued a notice that, effective immediately, all payments made by the NIH to universities, hospitals, research institutions and other grantees for “indirect costs”—which include costs related to facilities and administration—will be capped at a 15% rate. The change applies to both new and existing grant awards. The Division of Research has issued guidance to individuals on campus that receive NIH support and/or plan to submit an NIH proposal.
On February 10, 22 state attorney generals, including Attorney General Anthony Brown for the State of Maryland, filed suit against the U.S. Department of Health and Human Services and the NIH to seek injunctive relief from the NIH notice. The same day, a federal judge in Massachusetts issued a Temporary Restraining Order (TRO) preventing the NIH from enacting the rate change. On February 21, that judge extended the order until a further order is issued resolving the request for a preliminary injunction.
On February 17, the Department of Education announced the termination of over $600 million in teacher training grants. On March 10, a federal judge in Massachusetts issued a temporary restraining order preventing the termination of the grants. On April 4, the U.S. Supreme Court overturned the temporary restraining order to allow termination of the grants to move forward.
On February 27, the administration issued an executive order titled "Implementing the President's 'Department of Government Efficiency' Cost Efficiency Initiative." The order seeks to review and centralize all federal discretionary payments, including grants, projects and loans, under DOGE. Agency heads are tasked with immediately reviewing all grants and contracts and, notably, "the process... shall prioritize the review of funds disbursed under covered contracts and grants to educational institutions and foreign entities for waste, fraud, and abuse." Each agency head is instructed to complete this review within 30 days and determine if terminations or modifications are needed in order to promote efficiency or decrease spending. Once the review is completed, agency employees are instructed to publicly submit "brief, written justifications" prior to that employee's approval of a future payment for covered contracts and grants. There are also provisions freezing agency employee travel.
On March 27, the administration issued an executive order titled "Restoring Truth and Sanity to American History." The order impacts the Smithsonian Institution and "prohibit[s] expenditure on exhibits or programs that degrade shared American values, divide Americans based on race, or promote programs or ideologies inconsistent with Federal law and policy," which could have implications on projects conducted in partnership with Smithsonian museums and research centers.
On April 4, 16 state attorneys general, including Maryland Attorney General Anthony G. Brown, filed a federal lawsuit seeking injunctive relief against the Department of Health and Human Services (DHHS) and the National Institutes of Health (NIH). The lawsuit argues that "by postponing meetings, delaying the review of pending applications, failing to issue final recommendations, and terminating issued grants, NIH is failing to meet its statutory obligations and violating applicable regulations."
On April 11, the Department of Energy announced that, similar to the previous announcement by the National Institutes of Health, it would cap indirect cost rates for colleges and universities at 15%. The announcement further states that, "Consistent with this memorandum, the Department is undertaking action to terminate all grant awards to IHEs that do not conform with this updated policy." On April 14, the Association of Public Land-grant Universities (APLU), the Association of American Universities (AAU), and the American Council on Education (ACE) filed a lawsuit against the Department of Energy seeking a halt to the proposed indirect cost rate cut.