Dear Colleagues,
In light of recent developments, we are sharing the following updates regarding federally funded projects and related administrative issues. These matters are evolving quickly, and your review of the action steps and guidance below is appreciated.
Project Terminations and Notifications
You may have heard through news reports, campus announcements, or agency communications that terminations of federally funded projects are occurring. In some cases, project personnel are contacted by agency program officers before MSU receives official notification.
As of Friday, April 18, 2025, MSU has received official communications affecting more than 125 awards. These impacts include:
- Full and conditional terminations
- Stop work orders
- Cessation of funding for non-competing years
- Removal of payment mechanisms without explanation
Some projects have also been reinstated, and temporary restraining orders may be a contributing factor.
Agencies issuing these notices span the sciences, foreign assistance, arts, and humanities. While financial impacts vary, even lower-dollar terminations threaten the viability of research and creative work. Affected project topics include (but are not limited to) climate, environmental justice, agriculture abroad, health disparities, women’s health, and humanities research.
Action Required for Terminated Projects:
If you receive a termination notice, please be aware that quick action is often needed with:
- Close-out budgets
- Final cost reconciliations
- Potential appeals
- Other agency-specific requirements
New Federal Certification Requirements
We are actively consulting with the Office of General Counsel regarding new federal certifications tied to Executive Orders. These mandates are often effective immediately and may require policy revisions for compliance. We appreciate your patience as we work through these complex issues.
Appeals
In some instances, agencies acknowledge the right to appeal a termination; in others, they remain silent or deny it. If Contract and Grant Administration (CGA) forwards a termination notice, they will include suggested appeal procedures where applicable. Although outcomes may vary in this current environment, if you have questions, please reach out to CGA Awards group, as MSU may be able to identify information to support an appeal.
Grants.gov and Proposal Submissions
The Department of Governmental Engagement (DOGE) has asserted new authority over posting Notice of Funding Opportunity (NOFO) in Grants.gov. This may result in:
- Delays or reductions in available opportunities
- Mid-cycle NOFO changes
Since MSU proposals are submitted via Kuali Research, please ensure you are referencing the most current NOFO. If you know a change has been made to the NOFO, you may want to remove the opportunity in your proposal and re-add the updated version to bring in any changes. For assistance, contact your OSP Proposal Team or the KR Help Desk.
Award Delays
We continue to see slowdowns in the issuance of new and non-competing awards. If you are expecting an award and have not received it either through MSU or the sponsor, we encourage you to follow up with your program officer.
Department of Energy (DOE) and Indirect Costs
Prior to a recent legal ruling, MSU received a DOE notice identifying 57 projects that would be terminated unless MSU accepted a 15% cap on indirect costs. However, a Temporary Restraining Order (TRO) has been issued by a federal judge in Massachusetts following legal action by major higher education associations and institutions, including MSU.
Principal Investigators have already been contacted directly by CGA. They are advised to continue work in accordance with the DOE award objectives.
As communicated with past NIH actions, proposals should continue to include the full negotiated F&A rate. OSP is not authorized to accept awards below the approved rate, and no rebudgeting to reduce F&A costs will be approved.
Security and Unusual Requests
We are receiving new types of project and financial information requests, some via unfamiliar links or non-governmental addresses. Please be cautious with any project information request received from non-governmental addresses. We highly recommend following up with your knownagency contacts to confirm the email is legitimate before clicking on any unrecognized links.
What You Can Do Now
To reduce financial risk and improve response readiness:
- Ensure that expenses - including salaries, travel, and subaward payments - are charged promptly to appropriate accounts.
- Be aware that the government may disable reimbursement mechanisms before issuing a formal termination.
- If contacted by an agency requesting a project termination plan, do not respond directly. Contact CGA first – such a request could imply voluntary termination, which may limit your appeal options.
- Consider proactive adjustments to your project scope to align with current federal priorities.
Resources and Reminders
We encourage you to review the Federal Updates Resulting from Administration Transition resource for guidance and support during this time.
Feel free to share this email with MSU colleagues who may benefit from this information.
Listserv Information Reminder:
This listserv shares important updates, including revised policies, training opportunities, sponsor announcements, and technology/system changes. It also distributes the SPA Newsletter and Kuali Research Updates.
- To Join: Email listserv@list.msu.edu with the words "subscribe SPONPRGMS-OSP-CGANEWS" as the first line in the body of the message.
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Twila Fisher Reighley
Assoc. VP for research
Sponsored Programs Administration
Michigan State University reighley@msu.edu
