Funding

On May 1, an executive order was issued to prohibit Corporation for Public Broadcasting funds from being used to directly support National public Radio (NPR) or the Public Broadcast System (PBS).

On August 1, the CPB announced that it has begun winding down operations.

DoD has published the 2025 Decision Matrix to Inform Fundamental Research Risk Decisions. These updates will be effective for all proposals submitted on or after May 9th, 2025. These include previously mentioned updates such as the removal of the requirement for institutions to have a policy prohibiting participation in a malign foreign talent recruitment program (please note, researchers are still prohibited from participation in such a program by statute, only the institution policy piece has been removed. We have also added the prohibition included in Section 238 of the FY 2025 NDAA with the following prohibition: "Collaborations for the specific purpose of fundamental research between institutions of higher education and academic institutions that are included in the most recently updated list developed pursuant to section 1286 of the NDAA for FY 2019, as amended, or employees of such institutions."

The updated matrix also changes some of the dates that would trigger expected or suggested mitigation measures and removes the distinction between “associations” and “affiliations”. Finally, the language of the matrix has been clarified as to the treatment of co-authorships with institutions on various entity lists or with persons in malign foreign talent recruitment programs. Co-authorships with listed entities should not be the basis for the denial of an award but may result in mitigation measures being requested on a project-by-project basis. As noted in the matrix, international collaboration is an important mechanism for participating in the global scientific commons and promoting progress in fundamental research. The most recent matrix can always be found at the Basic Research | Research Directorate website.

On May 14, the DoD issued a statement limiting IDC costs to 15% for Institutions of Higher Education (IHEs). On June 12, the message was clarified to indicate: "For all new assistance awards to IHEs, DOD Components that make financial assistance awards to IHEs are directed not to allow indirect cost rates above 15% in all new assistance awards to IHEs as of the date of publication of this memorandum." They also instituted a 15% IDC cap on all existing awards with the caveat that the cap "is not required to be retroactive to the beginning of an award but must have an effective date that is not later than November 10, 2025. DoD Components may allow existing awards to operate under their originally determined indirect cost rate unit a renegotiation is completed. A federal judge issued a Temporary Restraining Order (TRO) barring the implementation on June 17, and a hearing is scheduled for July 2."

On July 18, 2025, the 15% IDC cap was struck down by an injunction.

In the grants space, the DoEd has not updated its grants communications page since January 14, 2025. Direct funding of student aid through Title IV funding is not expected to be impacted.

On April 11, 2025, the Department of Energy issued a policy flash that was communicated to RSP on April 14. This policy memorandum set a 15% indirect cost standard for use by institutions of higher education (IHE), like Illinois State University. Subsequently, several large national organizations, including APLU and AAU, filed a lawsuit. A temporary restraining order (TRO) was issued by a U.S. District judge on April 16, which has been extended indefinitely.

The Department of Energy’s Office of Science has ended the requirement for Promoting Inclusive and Equitable Research (PIER) Plans in proposals and will update solicitations and review criteria accordingly. Currently submitted proposals may be revised to remove the PIER if desired.

DOE issued a memo on January 27, 2025 directing the suspension of the following activities in any source of DOE funding, including grants and contract awards:

• Diversity, equity, and inclusion (DEI) programs and activities involving or relating to DEI objectives and principles; and
• Justice40 requirements, conditions, or principles.
• Community Benefits Plans (CBP); and
• According to the memo, DOE will initiate award modifications consistent with this order, and costs associated with these activities incurred after January 27, 2025 will not be reimbursed.

On April 11, 2025, the Department of Energy issued a policy flash that was communicated to RSP on April 14. This policy memorandum set a 15% indirect cost standard for use by institutions of higher education (IHE), like ISU. Subsequently, several large national organizations, including APLU and AAU, filed a lawsuit. A temporary restraining order (TRO) was issued by a U.S. District judge on April 16, and a Preliminary Injunction on May 15, 2025 halted the Department of Energy from "implementing, instituting, maintaining, or giving effect to the Rate Cap Policy in any form with respect to Institutions of Higher Education nationwide until a further order is issued...".

DoJ (sometimes known as National Institute of Justice when grants and contracts are involved), has suspended all Notice of Funding Opportunities per its website.

Many EPA programs and awards are on pause for review by the agency.

FEMA has paused grant funding nationwide, including federally funded projects under the Illinois Emergency Management Agency – Office of Homeland Security (IEMA-OHS). A Temporary Restraining Order (TRO) was issued.

Limited updates since a January 21, 2025 ban on communication from the agency.

The Summer Stipend program will likely not be funded this year. All grant programs currently available are posted at - https://www.neh.gov/grants/listing

On February 7, 2025, the National Institutes of Health issued a cap on indirect cost recovery of 15%. A temporary restraining order was issued on February 10 and further affirmed with a permanent injunction (applicable to the State of Illinois) on April 7, 2025.

On July 17, 2025, NIH issued guidance regarding training requirements for Senior/Key personnel:

Effective October 1, 2025, recipients must implement trainings, in addition to maintaining a written and enforced policy, on requirements for the disclosure of other support to ensure Senior/Key Personnel fully understand their responsibility to disclose all resources made available to the researcher in support of and/or related to all of their research endeavors, regardless of whether or not they have monetary value and regardless of whether they are based at the institution the researcher identifies for the current grant.

The NOT addresses the requirement for Other Support Disclosure Training and they provide the NSF training as a resource. Each module can be taken independently of the others, so to satisfy this requirement, one could take the module covering disclosures.

On July 18, 2025 NIH released a new policy to target AI generated grant application submissions, which:

• Prohibits applications that were substantially developed with AI.
• Opens the door to research misconduct investigations for suspected AI use (if identified post award).
• Limits PIs to 6 new, renewal, resubmission, or revision applications for all council rounds in a calendar year (single or MPI) - exceptions for T and R13 conference grant applications.

Per the NIH on March 25, 2025

We have posted an Implementation of New Initiatives and Policies page on the NIH Grants & Funding Website to pull together the latest information on recent and upcoming changes that impact applications and grants administration.

Page Highlights

• NIH Grants and Funding Information Status. Keep up to date on how NIH grants and funding information is evolving as we align with new agency priorities (e.g., status of communications, funding opportunities, application guidance, and more).
• Upcoming Changes. Get the latest status on in-progress initiatives like our adoption of Biographical Sketch and Current and Pending (Other) Support.
• Recent Changes. Learn about key initiatives implemented in 2024 that culminated in numerous changes to grant application content and review for due dates on or after January 25, 2025 and any adjustments made to those initiatives.

Bookmark the link, share it widely, and visit regularly for updated information.

On April 21, the NIH announced that “Effective with the issuance of this Notice, the following term and condition applies: Recipients must comply with all applicable Federal anti-discrimination laws material to the government’s payment decisions for purposes of 31 U.S.C. § 372(b)(4).”

On May 2, 2025, the NIH announced that it will restrict foreign subawards and will only issue direct awards on all renewal, non-competing continuation and new awards that contain foreign subawards.

The NIH announced that the public access policy goes into effect on July 1, 2025 (instead of December 31), removing the 12 month embargo. Existing supplemental guidance on allowed costs and journal integrity remain.

On May 7, 2025 the NIH temporarily disabled the No-Cost Extension (NCE) functionality in eRA Commons. “At this time, all requests for NCEs must be submitted as a prior approval request in eRA Commons, for NIH review and approval. Requests for activities that do not align with the NIH mission and agency priorities will not be approved.”

After a brief pause in the payment system, the NSF has been making payments, reviewing proposals, and issuing some awards. They maintain a website of questions and also have a web form to submit questions.

On April 18, 2025, the NSF issued a statement indicating that grants must align with their new policies. Nearly 1000 grants have been cancelled, including one award to Illinois State University.

On May 2, 2025, NSF released a new policy on Indirect cost rates for new awards. Policy Notice: Implementation of Standard 15% Indirect Cost Rate | NSF - National Science Foundation – “Effective May 5, 2025, NSF will apply a standard indirect cost rate not to exceed 15% to all grants and cooperative agreements awarded to IHEs for which indirect costs are allowable.[1] The awardee is authorized to determine the appropriate rate up to this limit. Effective May 19, 2025, NSF will revert to issuing awards according to the institution's negotiated rates while implementation is on hold. On June 20, 2025, the U.S. District Court for the District of Massachusetts, in No. 1:25-cv-11231-IT, vacated NSF’s 15% Indirect Cost Rate policy (NSF 25-034). In compliance with the court’s decision, NSF will not implement the policy at this time.

On May 22, 2025, the NSF sent a note about implementation of a practice introduced in the NSF24-1 PAPPG, e.g. NSF New Annual Malign Foreign Talent Recruitment Program (MFTRP) Certification. Starting on June 7, 2025, in accordance with the NSF Proposal and Award Policies and Procedures Guide (PAPPG) Chapter II.D.1.e(ii), all PIs or co-PIs named on an NSF award made on or after May 20, 2024, must certify annually in Research.gov that they are not party to a MFTRP. Individuals who are currently a party to a MFTRP are not eligible to serve as senior/key personnel on an NSF proposal or on any NSF award made on or after May 20, 2024. NSF is providing notification of this new requirement to impacted PIs and co-PIs.

USDA paused review and action on awards on January 21, 2025. Work on existing awards continues.

USDA issued guidance on July 8, 2025 asking institutions to minimize conflicts of interest and also reduce foreign influence. It also increases research security training requirements.