Federal Funding Updates

Departments should review contracts and grants related to areas affected by recent Presidential Executive Orders, particularly those involving foreign aid or DEIA. Identified projects should be submitted to the Office of the Provost and the Office of the Vice President for Research and Economic Development for immediate review.

Departments must immediately forward the notice to Office of the Provost and the Office of the Vice President for Research and Economic Development, and copy [email protected]. Work must cease immediately.

Impacted employees will be placed on unpaid leave/furlough for up to 30 days following the effective date of the Stop Work Order or Grant Termination Notice. Employees may substitute up to 80 hours of accrued annual leave for the first two weeks of the furlough period. Afterward, they will be placed on unpaid leave for the remainder of the furlough period. If another university position is not secured, the furloughed employees will separate from service at the conclusion of the 30 days.

HR Administration (Central HR) will work with impacted employees to assist in identifying appropriate vacancies at the university for which they may be eligible to apply. Furloughed employees will receive priority consideration for open positions. HR Administration will notify employees of available roles for which they qualify.

If a new position is accepted and the salary is lower than the current salary, the employee’s salary must be reduced to align with the new role. Vacant positions with starting salaries above the impacted employee’s salary will be reviewed and an appropriate salary will be determined by the hiring department and HR Administration.

Yes. For example, tenure-track or tenured faculty may discuss a tenure clock stoppage with their department chair and dean, or workload adjustments may be handled in consultation with the Office of the Provost.

The university may continue tuition waivers for affected students until the end of the semester. The student’s job responsibilities will be directed to another area that is not restricted by the Stop Work Orders/Termination of Funding.

Departments must fund student stipends and annual leave taken during furlough. Those with financial hardships should consult Finance and Administration.

Under a cost-reimbursable agreement, the university typically pays the project expenses first. Then, on a regular schedule (often monthly or quarterly), the university requests or “draws down” funds from the sponsor to cover those incurred costs. This ensures compliance with federal guidelines on minimizing the time between receiving and expending funds.

Websites and social media accounts associated with terminated grants or Stop Work Orders should be updated or deactivated. Departments should consult the Office of the Provost for guidance.

No. Employees must stop all work associated with the impacted grant, even if another funding source is available. Work cannot be continued using state or non-federal funds.

Federal regulations require us to ensure that funds are drawn down in alignment with actual expenses. Drawing down large sums too far in advance could lead to compliance issues, particularly if the funds are not immediately applied to legitimate expenses. We must minimize the time funds reside in our account; otherwise, we risk accruing interest and violating federal cash management regulations.

The Uniform Guidance (2 CFR §200.305(b)) does allow for advance payments, but it also cautions that any funds drawn in advance must be spent as close in time as possible to the related disbursement. This is to minimize the period during which the funds reside in the university’s accounts and to reduce any risk of accruing interest. Because federal agencies monitor these timelines closely, our policy is to process reimbursements after expenses have already been incurred rather than request large sums in advance.

If a grant is terminated, the university can still request reimbursement for all legitimate expenses incurred up to the termination date. Any costs incurred after the termination date may not be covered. This applies whether or not any funds were drawn in advance. The university’s Office of Sponsored Programs works diligently to submit drawdown requests for these charges as promptly as possible.

A liquidation period is a stretch of time following the award end/termination date that allows for final expense processing for the final report or invoice.

Due to differing sponsor regulations, each case is handled individually. PIs must work with their departmental Grant Contract Officer (GCO) to estimate closeout costs and should contact the Office of Sponsored Programs immediately for assistance. The Office of Sponsored Programs will review and submit potential allowable charges to the sponsor for approval.

No. Sponsor regulations, policies, and termination clauses differ. The Office of Sponsored Programs can provide specific guidance based on the affected award.

Reimbursement varies by agency and the type of cost. The Office of Sponsored Programs can provide specific guidance based on the affected award.

If you anticipate a significant expense and feel an advance drawdown may be justified, you should provide:

• A projection of the total amount needed.
• The timeframe in which you will be using these funds.
• Any relevant communication from your federal sponsor (e.g., Department of Education) that supports an advance payment request.

The Office of Sponsored Programs (OSP) will review the information to determine if an advance is appropriate and justifiable under federal guidelines.

Stop Work Order: a written directive from a federal agency instructing a federal contractor to immediately take all reasonable steps to minimize the incurrence of costs allocable to the work covered by the order during the period of work stoppage.

Termination of Grant: Following the termination of a federal grant, recipients of federal awards are also responsible for complying with relevant regulations regarding closeout, post-closeout adjustments, and continuing reporting responsibilities.

Furlough: A furlough is the placing of an employee in a temporary nonduty, nonpaid status because of lack of work or funds, or other non-disciplinary reasons.