Federal Funding Impacting Grants Update

This website is a resource for the university community and faculty. It provides up-to-date information on Presidential Executive orders issued by the new administration that impact grant funding, compliance, and research administration. We offer updates, summaries, and guidance to ensure implementation and compliance with federal, state, and institutional policies.

In these times of uncertainty and rapid change, university leadership remains committed to gaining clarity, advocating for our research community, and, when necessary, engaging in legal actions to protect our interests. While challenges arise, we will navigate them strong together.

If you have any questions or concerns, please do not hesitate to reach out.

Edmundo Garcia-Solis, Ph.D.
Associate Provost for Grants and Research.

Recent Executive Orders

Regularly updated list of the latest executive orders, memos, and federal agency announcements that impact university grants, including summaries and links to official documents may be found here: https://www.whitehouse.gov/presidential-actions/.

Date	Executive Order	Summary	Current Status
January 27, 2025	Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs	To the extent permissible under applicable law, Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations	Office of Management and Budget rescinded the memo on January 29
January 20, 2025	Ending Radical and Wasteful Government DEI Programs and Preferencing	The order terminates diversity, equity, and inclusion (DEI) and diversity, equity, inclusion, and accessibility (DEIA) programs within the federal government. The order directs the Office of Management and Budget (OMB), the Attorney General, and the Office of Personnel Management (OPM) to coordinate the elimination of DEI mandates, policies, and activities. Federal agencies are instructed to end DEI-related offices and positions, review employment practices to focus on individual merit, and report on DEI-related expenditures and activities.	The American Association of University Professors, the National Association of Diversity Officers in Higher Education and other groups argue in a lawsuit filed on February 5, 2025, that the orders exceed executive legal authority, violate both the First and Fifth Amendments, and threaten academic freedom and access to higher education for all.
January 20, 2025	Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government	The order establishes "definitions" of sex-based terms and seeks to ensure federal policies and laws reflect these definitions. The order emphasizes recognizing two "immutable biological sexes, male and female," and directs federal agencies to use these definitions in all official documents and policies. Key actions include revising identification documents to reflect "biological sex," removing references to gender identity in federal forms, and ensuring "sex-based rights" and protections are enforced. The order also mandates that federal funds not be used to promote gender ideology and requires agencies to update their policies and regulations accordingly.
February 7, 2025	Supplemental Guidance to the 2024 NIH Grants Policy Statement: Indirect Cost Rates	Sets a standard 15% rate for all Facilities and Administrative (F&A) costs assumed by institutions of higher education receiving federal research grants. Previously, the indirect cost rate was negotiated by NIH and each grantee based on individual project needs. CSU negotiated indirect cost rate is 50.5%	On February 11, a federal judge issued a temporary restraining order, shielding 22 states (including Illinois) from the National Institutes of Health’s efforts to institute an indirect cost rate cap of 15% for new and existing grants.

Potential Impact on Grants and Research

1. Ending Radical and Wasteful Government DEI Programs and Preferencing

Restrictions on DEI-Related Funding: If federal agencies are directed to eliminate or reduce funding for diversity, equity, and inclusion (DEI) initiatives, universities may see reduced opportunities for grants supporting underrepresented researchers, student diversity programs, and institutional DEI efforts.
Changes in Grant Criteria: Funding proposals that previously required DEI components, such as broader impacts on underrepresented groups, may be altered or removed as funding agencies adjust their priorities.
Compliance Considerations: Universities that receive federal grants may need to revise their internal policies to align with any new restrictions on DEI spending, reporting, or hiring practices.

2. Defending Women From Gender Ideology Extremism and Restoring Biological Truth to the Federal Government

Restrictions on Gender-Inclusive Research: Grants supporting gender studies, LGBTQ+ health research, or gender-affirming care may be deprioritized or defunded if agencies shift focus toward "biological sex" definitions.
Impact on Institutional Policies: Universities with policies or programs that include gender identity considerations in hiring, admissions, or research may need to navigate new federal compliance requirements.
Changes to Research Participation & Data Collection: Federal grant requirements may enforce stricter biological sex categorizations in human subjects' research, potentially impacting fields such as medical research, psychology, and sociology.

3. Supplemental Guidance to the 2024 NIH Grants Policy Statement: Indirect Cost Rates

Revisions to Indirect Cost Recovery: If the NIH modifies how indirect costs (overhead) are calculated or capped, universities may receive less funding to cover administrative expenses, facilities, and infrastructure that support research.
Budget Adjustments for PIs: Principal investigators (PIs) may need to adjust their grant budgets to accommodate changes in indirect cost reimbursement, potentially shifting more expenses onto direct research costs.
Institutional Financial Planning: Universities may need to reassess how they distribute research funding internally, particularly for administrative support, lab maintenance, and compliance functions.

Guidelines

Chicago State University has carefully reviewed the executive orders, agency communications, responses from the higher education community, and other relevant considerations.

Based on the recommendation of our General Counsel and with the agreement of the President and University Leadership, we advise Principal Investigators (PIs) to continue all grant activities as usual unless specific instructions are received from the funding agency or the primary funding institution in the case of sub awards.

If you receive any communication from your funding agency regarding this matter, please share it immediately with the Office of Grants and Research. We will review the information and provide further guidance as needed.

Additional guidance

Review the Grant Agreement. Ensure you understand the terms, especially clauses related to funding availability and reimbursement.
Closely monitor obligated budget balances to avoid deficits while awaiting future obligations.
Communicate with the Grant Officer: Stay in touch with your program or grant officer to confirm there are no changes affecting your award.
Reports and Deliverables. Prioritize the submission of any technical reports or deliverables that may be past due. Sponsor proposal review timelines may be extended while federal agencies navigate pauses on federal assistance funding in specific areas. There may be changes to proposal deadlines. It is recommended to reconfirm the deadline. Reconfirm that the funding announcement has not been revised or postponed.
Monitor Policy Updates: Look out for announcements from the federal agency overseeing your grant for any updates on funding or compliance requirements. If available, consider signing up for alerts from the federal agency or sponsor.