Impact of the Federal Government Shutdown on Sponsored Projects

Update - November 2025

As of Thursday, November 13, 2025, the U.S. government resumed operations after a record 43-day shutdown, the longest in its history.  Following the government reopening, federal agencies have released specific guidance regarding grant applications and awards. Key information is available from the National Institutes of Health (NIH), National Science Foundation (NSF), and NASA, primarily addressing rescheduled deadlines and processing backlogs. 

Agency-Specific Guidance

  • National Institutes of Health (NIH): All grant application deadlines for October and November have been rescheduled to allow applicants full access to NIH staff and help desks. Peer review and council meetings scheduled during the shutdown period were canceled and are being rescheduled. The eRA service desk is working through a backlog of tickets, so response times may be longer than usual.
  • National Science Foundation (NSF): The NSF is operating under a continuing resolution and prioritizing the restoration of award-making capacity. Proposals submitted during the shutdown are valid and will be processed in order of receipt. Delays in reviews and funding decisions are anticipated. Program officers are contacting panelists directly to reschedule review panels, and a revised schedule will be posted on the NSF website.
  • NASA: NASA Science Mission Directorate (SMD) has resumed normal operations and is working to reset proposal deadlines for ROSES programs impacted by the lapse in funding. Most impacted deadlines will be delayed by a minimum of 30 days, with a few exceptions based on critical operational constraints.
  • Other Agencies (General): Existing grants and payments generally proceeded without disruption during the shutdown. However, new awards, supplements, and prior approval requests (e.g., no-cost extensions requiring approval) are expected to face delays due to processing backlogs. 

Key Actions for Applicants/Awardees

Anticipate processing delays for new awards, reviews, and general communications as staff work through significant backlogs.

Continue to track costs and any delays incurred due to the shutdown, which may be helpful if an extension is needed later.

Update - September 2025

The US government shut down at midnight on Tuesday, September 30, 2025, amid partisan impasse. Active federally sponsored projects are not expected to experience major issues.  However, issuance of new grants or contracts or renewal of existing projects will be delayed. Agencies also will not be able to provide assistance.  Federal employees will not be available to take phone calls, respond to emails or update informational resources.

Proposal Submission

Faculty should continue to submit their proposals on time to the Sponsored Projects Administration team in the Office of Research.

Proposals will not be processed by the agencies until normal agency operations resume.

Peer review panels and study sections are not held but are expected to be rescheduled once agencies resume operations.

Agencies will not be able to respond to any inquiries.

Notice of Awards or Extensions

New grants, contracts or cooperative agreements will not be awarded or released.

Funds authorized (obligated) during the project period of performance are available to projects; costs exceeding available award amounts are not authorized.

If funds are expiring, no cost extensions will not be granted where sponsor prior approval is required. 

Continuations will not be awarded until government operations resume as normal. 

Project activities should continue and necessary costs should be incurred to maintain project progress. However, costs should be closely monitored.

PostAward

Researchers should continue work under federal awards and sub-awards, provided funds are authorized during the period of performance.

Researchers should contact their Grant and Contract accountant with questions about fund availability for active awards.

Researchers should continue to perform work under contracts or cooperative agreements where funds were obligated, and where performance does not require government support, oversight, prior approval or other actions required of agency staff.

If a research project team receives a stop-work notification, the notice should be immediately forwarded to the Director of Sponsored Projects via email to angelitat@smu.edu.

Activities on grants, contracts and cooperative agreements should continue as normal, but the university may be delayed in receiving funds to reimburse for incurred costs on existing awards.

Annual/interim reports, final project reports and project outcomes reports should continue to be submitted in accordance with project due dates.

Federal Agency Guidance on Resumption of Activities

Federal Agency Guidance - Shutdown