Federal Funding Updates

Dear Fresno State Research Community,

We're sharing some important updates on funding freezes coming from various sources. 

1. NIH Research cuts: https://www.reuters.com/business/healthcare-pharmaceuticals/us-judge-bars-trump-administration-cutting-nih-research-funding-2025-03-05/

2. Bringing to your attention that California Attorney General Rob Bonta today secured a decision by the U.S. District Court for the District of Rhode Island preventing the Trump Administration from implementing a sweeping federal funding freeze while litigation continues. Attorney General Bonta led a coalition of 23 attorneys general in filing a lawsuit to block the funding freeze last month. A copy of the preliminary injunction is available here.

Attorney General Bonta Secures Preliminary Injunction Against Trump Administration Blocking Harmful Federal Funding Freeze

If allowed to go into effect, the federal funding freeze would have threatened hundreds of billions of dollars in California annually, including vital public safety, healthcare, childcare, and infrastructure funding, and other essential services

California Attorney General Rob Bonta today secured a decision by the U.S. District Court for the District of Rhode Island preventing the Trump Administration from implementing a sweeping federal funding freeze while litigation continues. The Court finds that the states are likely to succeed in their claims that the Trump Administration violated the Administrative Procedure Act by freezing funds in contravention of underlying appropriations statutes and that their actions were arbitrary and capricious. The Court specifically notes that the Trump Administration has failed to rebut the harms that the states have presented, including to the states’ most vulnerable residents. These include the potential impacts to services that increase workplace health and safety, water quality, critical transportation infrastructure, and law enforcement and public safety, as well as programs such as Head Start, education services for students with disabilities, and research projects at state universities. Attorney General Bonta led a coalition of 23 attorneys general in filing a lawsuit to block the funding freeze last month. 

“Last month, the Trump Administration chaotically implemented a sweeping federal funding freeze, halting access to billions of dollars in funds lawfully appropriated by Congress. In doing so, it willfully ignored the immediate devastation a freeze would have on the health, safety, and wellbeing of communities and businesses across the country,” said Attorney General Bonta. “Staff in my office worked overnight to ready a lawsuit challenging this illegal freeze and have continued to fight for these critical funds. Today’s decision is an important victory for the rule of law and for the many programs throughout our state that rely on federal funding to carry out their mission. But the fight is not over, and we will continue to work to secure a permanent decision blocking this radical freeze.”

BACKGROUND 

Last month, a coalition of 23 attorneys general, led by the attorneys general of California, New York, Rhode Island, Illinois, and Massachusetts, sued the Trump Administration over its attempt to freeze up to $3 trillion in vital federal funding. The U.S. District Court for the District of Rhode Island quickly granted the attorneys general’s request for a temporary restraining order, blocking the freeze’s implementation until further order from the court. Soon after, the attorneys general filed motions for enforcement and a preliminary injunction to stop the illegal freeze and preserve federal funding that families, communities, and states rely on. The court granted the motion for enforcement, ordering the Administration to immediately comply with the temporary restraining order and stop unlawfully freezing federal funds. 

In just this fiscal year, California is expected to receive $168 billion in federal funding – 34% of the state’s budget – not including funding for the state’s public college and university system. This includes $107.5 billion in funding for California’s Medicaid programs, which serve approximately 14.5 million Californians, including 5 million children and 2.3 million seniors and people with disabilities. Additionally, over 9,000 full-time equivalent state employee positions are federally funded.

Attorney General Bonta is joined by the attorneys general of Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, North Carolina, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington, and Wisconsin in securing the preliminary injunction.   

3. Separately, other sources indicate continuing anti-DEI preparations at NIH,  https://www.nature.com/articles/d41586-025-00703-1

We understand that sharing this information may confound clarity, but we believe that transparency allows us to better prepare and provide guidance based on best practices, aligning with the approach taken by most institutions in our system and state.

Recent events have created uncertainty and concern regarding federal grant and contract activities. We are working closely with our Chancellor’s Office colleagues, including leadership in the Office of Federal Relations, Office of General Counsel and Business and Finance to receive information about executive action impacting federal grant and contract activities, assess and understand the scope of these actions, and develop appropriate response strategies.

Several universities continue to report funding freezes and grant cancellations. We anticipate that this number will climb as a result of Executive Order “Implementing the President’s ‘Department of Government Efficiency’ Cost Efficiency Initiative” released on Wednesday, February 26, 2025.  The order states in relevant part:

(b)  Review of Covered Contracts and Grants.  Each Agency Head, in consultation with the agency’s DOGE Team Lead, shall review all existing covered contracts and grants and, where appropriate and consistent with applicable law, terminate or modify (including through renegotiation) such covered contracts and grants to reduce overall Federal spending or reallocate spending to promote efficiency and advance the policies of my Administration.  This process shall commence immediately and shall prioritize the review of funds disbursed under covered contracts and grants to educational institutions and foreign entities for waste, fraud, and abuse.  Each Agency Head shall complete this review within 30 days of the date of this order.”

As we prepare for increased scrutiny and cancellation of federal grants and contracts, we offer the following guidance.

General Guidance:

If you have not received specific communication from your sponsoring agency, please continue your research project in accordance with the grant or contract terms and consistent with EOs released to date. For new proposal writing and submissions, follow the latest guidance outlined in the corresponding calls for proposals or program announcements.

Federal Grant and Contract Proposals:

Continue to submit federal grant and contract proposals to available federal funding opportunities as long as federal submission systems remain operational. Federal agency proposal review timelines may be delayed due to agency-specific implementation plans and funding guidelines. Check program websites and funding opportunities regularly for changes in deadline dates. Review new versions of funding opportunities carefully to ensure that your proposal is compliant. While funding opportunities often make explicit the changes that occur with reissue, not all changes in the wording may be highlighted. Sign up for federal agency alerts, if available, especially for the agencies to which you apply.

Active Grant and Contract Awards:

Performance on active awards can continue if obligated funds are available AND a stop-work or termination order has not been issued by the agency. Monitor fund balances to avoid deficits while waiting for continuation funding. Anticipated future funding is always subject to the availability of funds and should not be considered guaranteed. Notices of new, continuing, or supplemental funding may be delayed. Awards currently under negotiation may be placed on hold until further notice by the funding agency. Stay in contact with your program officers, if possible. However, note that some agencies have put a temporary hold on communications as EO implementation plans are established. Monitor updates from federal agencies, for updates on funding or compliance requirements.

If Principal Investigators (PIs) or department administrators receive any award notifications or other agency communications, including "Stop-Work" or "Termination" Orders, please forward all relevant documents to your Campus Chief Research Officer, Dr. Jason A. Bush, Interim AVP, Research and Sponsored Programs, at jbush@csufresno.edu.

Important Considerations:

We understand these are uncertain times, and we sincerely thank you for your continued dedication to our research and sponsored programs mission, which remains as vital as ever. We understand that these actions are increasing anxiety levels across the CSU system and that many of you have important questions. There is limited information at this point regarding how these actions will specifically impact the research enterprise. However, we are committed to keeping you informed about federal activities and advocating in support of CSU’s research priorities. We will continue to update the university community as we move forward.

Thank you for your understanding and cooperation.

Earlier this week, federal judges in Rhode Island and Washington D.C. issued temporary restraining orders (TROs) preventing federal agencies from terminating existing research activities impacted by recent executive orders or the OMB memo. The Department of Justice has clarified that federal agencies cannot pause, freeze, block, cancel, or terminate awards based on these directives. However, these TROs are temporary, and agencies must still review grants for compliance with federal law. This means that some agencies may still pause, modify, or terminate specific activities in the future. Especially federal agencies that have issued notices requiring an immediate halt to all specific DEIA (Diversity, Equity, Inclusion, and Accessibility) activities.

Yesterday afternoon (02/07/2025) NIH announced a 15% indirect cost rate will now apply to all new and existing grants. This is another negative impact to biomedical research.

At this time, we advise faculty to continue all grant-funded research activities unless specifically notified of a suspension (cease & desist) or termination by agency personnel (e.g., a program officer). We encourage you to continue writing and submitting federal grants.

Guidance for Faculty:
●    Review your grants & budgets – Ensure timely spending of awarded funds and confirm expenditures align with approved budgets.

●    Exercise caution in making new financial commitments—funded awards could be affected by shifting federal priorities.

●    Prioritize essential spending – Avoid unnecessary delays in purchasing approved research materials, hiring personnel, or conducting project activities.

●    Communicate with program officers – If you anticipate delays in spending or project milestones, contact your program officer for guidance on modifications or extensions.

●    Monitor agency guidance – Stay informed through official funding agency announcements and websites. If you receive specific communications from federal sponsors, please forward to Dr. Jason Bush, Interim Associate Vice President for Research and Sponsored Programs (jbush@csufresno.edu).

We are working closely with the Chancellor’s Office (Government Relations & General Counsel) and the campus research leadership network to monitor developments. We will continue to provide updates as more information becomes available. If you have questions or need assistance, please reach out to our office.