Federal Funding Updates

As outlined in the recent message by President Drake and the attached 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. A short time ago a federal judge put an administrative stay that blocks the pause on funding until Monday, February 3. UPDATE 1/29/25: The administration has rescinded the OMB Memo.


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 research@ucsc.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 Santa Cruz campus leadership and Office of Research team 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.

Pre-Proposals and Pre-Award:

  • The Office of Sponsored Projects will continue to submit proposals to federal agencies, unless submission portals are closed.
  • Principal investigators, along with research development 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 OSP. Do not stop work only on the basis of rumor or internal agency guidance. Agencies are required to notify UC Santa Cruz’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 or RAs receive any award modifications or other notices, please forward them to OSP as soon as possible at ospdocs@ucsc.edu so that these can be reviewed and processed quickly.
  • Notify OSP at ospdocs@ucsc.edu if you receive a “Stop Work” notice from a federal sponsor for an award. A stop work order typically means that all project work needs to stop immediately, and no expenses can be incurred on the project as of the effective date of the stop work notice.
  • Try to remain in contact with your program officers, but 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.
Last modified: Jan 29, 2025