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Navigating Changes in Federal Funding

Last updated Tuesday, Dec. 16, 2025

Overview

Since January 2025, the federal agencies and sponsors that fund research, instruction and outreach at NC State — and hundreds of other public and private research universities nationwide — have been impacted by Executive Orders and other guidance resulting from the transition to a new presidential administration. Changes to and potential delays in these sponsors’ proposal review and award processes are among the resulting impacts.

We understand that these orders and guidance, as well as both agency internal communications and related media coverage, raise questions about how NC State programs supported by federal funds will be affected.

This webpage is intended to help keep the NC State research community informed, and it focuses specifically on federally sponsored programs. We realize, however, that Executive Orders, Stop Work Orders, Terminations and associated actions have other implications for our campus community. COGR, an association of research universities, affiliated medical centers, and independent research institutes focused on federal policies and regulations, is closely tracking the federal administration transition activity and providing updated information.

Latest Update

On Nov. 12, 2025, the federal government reopened, ending a shutdown that started Oct. 1.

Guidance and Recommendations

As always, please consult your College Research Office for specific proposal and award needs. In addition:

  • The use of pre-award project IDs and at-risk spending should be limited to only those projects where progress is at significant risk.
  • Those who receive a directive or guidance directly from their sponsoring federal agency should email researchadministration@ncsu.edu so we can monitor how agencies are responding to recent changes and support you in determining appropriate responses. 
  • The university has received new assurance requests, including certifications, questionnaires and data requests in many forms from various agencies. Individuals should not respond to these but should forward them to SPARCS at SPS@ncsu.edu and your College Research Office.

Terminations

  • If you receive a termination notice, please forward the notice to your College Research Office, SPS@ncsu.edu, and researchadministration@ncsu.edu. Your College Research Office will work with your unit and SPARCS to:
    • Review the terms and conditions of your grants and contracts
    • Understand what federal regulations govern the termination
    • Determine how to properly closeout and recover any allowable costs on your grant or contract
    • Determine the timelines and next steps

Termination Appeals

  • To appeal the termination of an award, follow all instructions on this intranet page (Unity ID required) and complete a request form to trigger internal review.
    • Termination appeals must be approved by the Vice Chancellor of Research and Innovation.

Proposals

  • Proposals to the NIH and DOE should continue to follow opportunity-specific guidance. Please consult your College Research Office for budget assistance.
  • Submit proposals according to published deadlines. Most proposals are electronically time-stamped, so they will be accepted or deemed late according to electronic submission. It is not clear when or how proposals for various agencies and programs will be reviewed.
  • Review the original electronic copies of funding announcements you are responding to in order to identify any changes to due dates, scope or other requirements. Sign up for automatic alerts where available. Some opportunities have been suspended and others modified to implement Executive Orders.

Awards

  • Contracts, grants and other agreements with federal agencies and federal contractors remain in effect unless formally modified, or a Stop Work Order or a Termination is received. 
  • Deliverables, including progress reports, should be submitted as scheduled. Technical reports submitted through electronic portals are time-stamped. Overdue reports jeopardize future funding to NC State and our collaborators.
  • Agency portals for prior approvals continue to function. Please continue to request modifications in a timely manner via the Project Modification Request (PMR) system. 
  • Continuation awards and prior approvals that require sponsor staff review may be delayed.
  • Compliance requirements and assurances for sponsored programs might change. Please forward any new assurance requests, including certifications, questionnaires or data requests, to SPARCS at SPS@ncsu.edu and your College Research Office.
  • Researchers should expect limited communication from their federal program and grant management officers during this transition period.
  • Project budgets and burn rates should be closely monitored. Deficits should be avoided. Spending against future funds should be limited as future obligations may be delayed. In extreme cases, expenditures against future funding may not be reimbursed.

Agency-Specific Guidance

Department of Energy

Proposals to the DOE should continue to follow opportunity-specific guidance. Please consult your College Research Office for budget assistance.

National Institutes of Health

Proposals to the NIH should continue to follow opportunity-specific guidance. Please consult your College Research Office for budget assistance.

PIs do not need to take action in response to the NIH Supplemental Guidance to the 2024 NIH Grants Policy Statement: Indirect Cost Rate or the DOE press release limiting financial support of “indirect cost” to Higher Education. Central offices will adjust F&A rates appropriately if it becomes necessary.

National Science Foundation

Contact SPARCS at SPS@ncsu.edu before submitting a new proposal to NSF.

Projects with DEI Supplements, Segments or Activities

  • Under the Executive Order issued on Jan. 20, 2025, federal agencies are instructed to eliminate DEI considerations from their processes. This directive affects current and future Notices of Funding Opportunities and award terms and conditions.
  • Programs with specific diversity, equity and inclusion initiatives should be reviewed for compliance with any specific agency requirements or University guidance. Other project activities should continue.
  • Funds allocated for DEI activities on federal awards should not be re-budgeted, nor used for other purposes unless directed by the federal sponsor.

Stop Work Orders

NC State has received both Stop Work Orders for all project activities on specific awards and orders to cease certain activities related to the Executive Orders (e.g., DEI, Community Benefit Plans).

Project Stop Work Orders

  • For temporary Stop Work Orders, the issuing agency will likely thereafter complete a review resulting in either a resumption of the award (possibly following revisions to the Statement of Work and/or an award modification) or award termination.
  • Stop Work Orders should be promptly forwarded to your College Research Office, SPS@ncsu.edu and researchadministration@ncsu.edu.
  • Stop Work Orders will be processed in RED to effect a temporary pause in spending on any associated ledger-5 account.

Directives to Cease Certain Types of Activities (DEI, Community Benefits Plans, etc.)

  • The activities described must be discontinued.
  • Reviewing the associated federal funding announcement, proposal and award can help identify related activities.
  • Continue your non-DEI or other project activity (including travel) unless you receive a project Stop Work Order.

Media Inquiries

Media inquiries should be forwarded to newstips@ncsu.edu and researchadministration@ncsu.edu and responded to as follows:

Thank you for your email. All inquiries regarding NC State research are directed to newstips@ncsu.edu. Your message has been forwarded.

FAQs

What does a Stop Work Order mean?

While a Stop Work Order is in effect, NC State personnel should not be conducting sponsored project activities or incurring new operational costs. Please be sure all project personnel, including subrecipients, are informed.

Must I cancel future travel planned/prepaid before the Stop Work Order was received?

It’s recommended to postpone project activities scheduled over the next several weeks where financial loss from doing so is minimal. Decisions on later travel will likely be dictated by the funding agency’s disposition of the Stop Work Order.

What options do I have if my project is terminated?

The next steps in the event of a project termination are dependent on the specific agency, nature of the work, and terms and conditions included in the terminated award. Please work with your College Research Office and SPARCS to discuss possible next steps.

Does the university maintain records relating to prior and current awards?

NC State maintains copies of documentation relevant to all of our funding agency awards in our internal systems (RED, PMR, etc.) and will continue to have access to those records in the event of an extended outage or loss of access externally.

Prior Updates

Scroll through the timeline below
to see our past updates

Timeline