Dear Colleagues,
I am writing to share some new information related to the federal administration and its recent actions that are impacting research and higher education.
As of this morning, the President’s budget request for FY 2026 has been shared. The proposed budget includes significant cuts to some of our major funding agencies, such as the National Institutes of Health (NIH), the National Science Foundation (NSF), and others. It also proposes the elimination of important supporters of Notre Dame research, scholarship, and creative endeavor, including AmeriCorps, the National Endowment for the Arts (NEA), and the National Endowment for the Humanities (NEH). It is important to remember that the President’s proposed budget is the initial step in the congressional appropriations process and serves as a policy blueprint rather than a final funding decision. While proposed cuts to federal research agencies are important for us to pay attention to, there are still a large number of actions that must take place before the budget is finalized for the next fiscal year.
We are also continuing to monitor the impacts of the grant terminations that Notre Dame has received from these agencies, and others. Recent news items have indicated that the NSF, for example, has stopped all funding activities. At this point in time, Notre Dame has not been officially informed of a cessation of NSF funding beyond individual grant cancellations. However, we are monitoring the situation closely.
Further, there are continued challenges related to proposed changes to facilities and administration (F&A) cost recovery from the Department of Energy and the NIH. These changes to the agreed indirect cost rate are currently halted by court action. In addition, the NSF announced today the implementation of a 15% F&A rate for all new awards. It is anticipated that various organizations representing higher education will soon commence legal proceedings in relation to this NSF proposal. For now, though, please know that the staff of Notre Dame Research Administration and Compliance (NDRAC) will continue to work with you to understand the impact on existing awards and future proposals in the context of the current federal situation.
In addition to the issues raised above, the NIH is also in the process of implementing a new procedure for handling foreign subrecipients on grants. Full details on the new process are not yet available, but going forward the NIH has indicated that additional reporting requirements and a different administrative award structure will be in place. Most notably, the NIH has indicated it will not issue new awards or renew previous awards that include a subaward to a foreign entity. NDRAC will reach out directly to those most immediately affected by this new policy and will continue to monitor its implementation.
The NIH also released this week a notice indicating that it is moving up the date for implementing an expanded public access policy. NDR was aware of the existing implementation timeline, is monitoring this situation, and will share more details as they arise.
We recognize that this is a period of rapid change and we want to reassure you that we are here to support you and your critical work. Should you have any questions, information to share, or other concerns, please do not hesitate to reach out to federalresponse-list@nd.edu. Senior members of my team, as well as leaders from within the University’s DC office, monitor this email inbox. They are here to support you and can provide guidance on issues impacting your research, such as required agency certifications, grant terminations or stop work orders, guidance on the possibility of appeals, and more. In addition, they can connect you to key University partners, such as the Office of General Counsel or Media Relations, as needed.
Finally, please ensure that you are staying in compliance with all grant requirements, including submitting your progress reports on time or updating your grant’s websites, newsletters, or social media to match the funder’s branding requirements. Non-compliance with items such as these may become grounds for terminating an award, so we encourage you to stay on top of these requirements at all times. Please also ensure you regularly check your spam mailbox, as there have been a number of instances recently where important communications from federal funding agencies have not made it beyond spam filters.
Thank you again for your continued efforts to advance the University’s mission to be “a powerful means for doing good” in the world. We are grateful to you for your continued flexibility, understanding, and grace during this period of change and uncertainty.
