On January 27, the Office of Management and Budget (OMB) issued a memo freezing nearly all federal grants and loans. While the memo was later rescinded, much uncertainty remains for the scientists and researchers who rely on federal funds to do the critical scientific work that keeps our nation healthy, prosperous, and secure.
President Donald Trump’s executive orders directing agencies to stop any funding related to diversity, equity, and inclusion efforts; environmental justice programs, services, or activities; and foreign aid remain in effect and have led many federal agencies (including NASA, the National Science Foundation, the National Institutes of Health, the State Department, and the U.S. Agency for International Development) to impose various stop-work orders and other restrictions on the review of research grants and the disbursement of funds.
It all started on the night of Monday, January 27, when Acting OMB Director Matthew J. Vaeth issued a memo (M-25-13) ordering a temporary pause on all federal grants, loans, and other financial assistance programs. The stated purpose of the action was to ensure that no federal funds were being used in ways that do not align with recently issued executive orders.
AAU President Barbara R. Snyder issued a statement on Tuesday expressing concern about the memo and urging the Trump administration to continue critical grant-funded activities across the country while federal agencies performed reviews and provided clear guidance on how to proceed.
“This pause of American scientific research not only sets us back against global competitors; it is also a significant loss for people at home,” said President Snyder, continuing: “It means the country stops its work to find better treatments for diseases like cancer and Alzheimer’s. It means the country stops its scientific work designed to help farmers do better by increasing yields and fighting crop disease and extreme weather. It means the nation puts on hold the scientific discoveries that can boost manufacturing, including new innovations that lead to start-up opportunities for new small businesses. And it means we stop working on the science and technology to better protect our military servicemembers in the field and to give them the advantages against enemy forces that could bring them home safely.”
OMB rescinded the memo on Wednesday after widespread confusion as well as a lawsuit that resulted in a federal judge temporarily blocking the pause in federal grants and loans from going into effect. Following a hearing on Wednesday in another lawsuit filed by 22 state attorneys general, a federal district court in Rhode Island granted a temporary restraining order stopping implementation of any funding freeze despite the rescission of the memo. OMB Acting Director Vaeth told CNBC that additional executive action “to end the egregious waste of federal funding” can be expected “in the coming weeks and months.”
Even though the OMB memo has been withdrawn, various restrictions on grant reviews and disbursements at federal agencies continue to hamper scientific research across the nation:
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National Science Foundation (NSF): On January 28, the NSF issued a message stating that it is pausing “all review panels, new awards, and all payments of funds under open awards.”
It later issued another message saying that the agency is “working expeditiously to conduct a comprehensive review of our projects, programs and activities to be compliant with the existing executive orders.” The agency instructed NSF grantees to comply with Trump executive orders “by ceasing all non-compliant grant and award activities,” including, but not limited to, “conferences, trainings, workshops, considerations for staffing and participant selection, and any other grant activity that uses or promotes the use of diversity, equity, inclusion and accessibility (DEIA) principles and frameworks or violates federal anti-discrimination laws.”
The pause on payments, Science reports, has left scientists “wondering how to meet payrolls and buy and maintain essential equipment and supplies.” To date, the NSF has not reopened its portal for researchers to receive awards and other payments despite the orders from the federal judges to resume federal grants and OMB’s rescission of its memo.
Update, February 2: On Sunday, the NSF posted the following update on its website: "Access to the Award Cash Management Service (ACM$) has been restored and the system is available to accept payment requests as of 12:00 PM ET on February 2, 2025." The agency also shared FAQs with the researcher community about the ACM$ and other issues.
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National Institutes of Health (NIH): On January 21, Health and Human Services Acting Secretary Dorothy A. Fink issued a memo pausing public communications and issuance of documents “through February 1, 2025,” at agencies inside the Department of Health and Human Services, including NIH.
NIH Acting Director Matthew Memoli later issued a memo to agency employees outlining the scope of the pause and providing additional guidance. According to Stat, “The memo clarified that ongoing clinical trials can continue, and that patients can travel for trials. Travel, procurement, and contracting can continue for anything directly related to human safety, human or animal health care, security, biosecurity, and information technology security. Institutes can also hire in those areas, if they are approved for an exemption from the NIH director’s office.”
Funding for new NIH projects, however, remains on hold; all study sections and advisory council meetings where grant applications are reviewed have been cancelled until February 1. An NIH spokesperson told Science that “no meetings have been cancelled after Feb. 1.”
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NASA: On January 23, NASA sent a memo instructing contractors and grantees to immediately “cease and desist all DEIA activities required of their contracts or grants.” According to the memo, “This work may include but is not limited to: DEIA plan requirement, training, reporting, considerations for staffing, or any other direct or indirect contract or grant activity.”
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State Department and USAID: On January 26, the State Department said in a press release that Secretary of State Marco Rubio has “paused all U.S. foreign assistance funded by or through the State Department and U.S. Agency for International Development (USAID) for review … to ensure that [foreign assistance programs] are efficient and consistent with U.S. foreign policy under the America First agenda.” Rubio later approved a waiver “for life-saving humanitarian assistance during the period of the review.”
On January 28, USAID sent a memo instructing contractors and implementing partners “to take immediate action to pause implementation of USAID program-funded activities and otherwise refrain from further commitments or expenditures of USAID funding, until further notice.”
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Department of Energy: DOE Acting Secretary Ingrid Kolb issued a memo on January 20 announcing an agency-wide review of program and administrative activities, including the “awarding of grants, loans, [and] funding opportunities,” to ensure they are “consistent with current administration policies and priorities, including budgetary priorities.” The DOE Office of Science also announced that it is “immediately ending the requirement for Promoting Inclusive and Equitable Research (PIER) Plans in any proposal submitted to the Office of Science.”
Kritika Agarwal is senior editorial officer at AAU.