Federal Executive Orders (EOs) & Other Policy Directives

Last updated: June 13, 2025

This page will be updated as new information is available related to federal executive orders, court actions, and other policy directives that impact the University of Minnesota research community. Sponsored Projects Administration (SPA) and the Research and Innovation Office (RIO) remain in close communication with the UMN Federal Relations team and other UMN partners, peer institutions, and national associations to monitor these impacts and to advocate for the needs of the University community.
 
 

Receive updates on the most current information and guidance:
Subscribe to Federal Funding Updates >

Recent Legal Updates & Current Guidance for UMN Researchers

DoD Announces 15% Indirect Cost Cap on Higher Education Awards (Updated 6/13/25)

The Department of Defense (DoD) has issued a memo announcing the Implementation of a 15% Indirect Cost Cap on Assistance Awards to Institutions of Higher Education. DoD had previously shared plans to implement the rate cap but had not formally announced it.

The 15% indirect cost (F&A) rate cap applies to new awards effective immediately. DoD states that existing DoD grants and cooperative agreements will need to be renegotiated by no later than 11/10/25. At this time, we can continue to charge our negotiated F&A rates on existing grants.

The University of Minnesota has not approved the submission of proposals or acceptance of new awards at the 15% rate. Principal investigators (PIs) should continue to budget normally using the University's federally negotiated rates.

PIs should not take any action if they are contacted by the DoD sponsor. If contacted, they should forward the communication to their SPA Grant and Contract Officer (GCO) and copy both David Hagen and April Coon on the email. SPA staff will determine whether there is any action required.
 

Unsolicited Inquiries from NSF (Updated 6/13/25)

SPA staff have heard about multiple cases recently of National Science Foundation (NSF) personnel reaching out directly to principal investigators (PIs) and asking them to: a) modify their scope of work, b) certify their adherence to NSF’s new priorities, and/or; c) certify their adherence to Federal anti-discrimination statutes.

If you receive such a request, please contact your SPA Grant and Contract Officer (GCO) immediately. Please also copy your associate dean for research on any such correspondence. SPA GCOs will coordinate with their managers and with PIs in developing a compliant response.

The requested scope changes may involve a request to remove DEI-related activities. While work scope changes do not need to go through SPA, SPA staff can assist in coordinating appropriate responses.
 

NIH Rescinds "Notice of Civil Rights Term and Condition of Award" (Updated 6/12/25)

On June 9, the National Institutes of Health (NIH) rescinded Guide Notice “Notice of Civil Rights Term and Condition of Award” (NOT-OD-25-090). NIH is awaiting further Federal-wide guidance and will provide a future update to the extramural community. The previous guidance is no longer in effect.

Questions about specific awards may be directed to your SPA Grant and Contract Officer.

Update: This notice was removed from the NIH website, and the previous guidance is still in effect.
 

NSF Policy Notice to Implement a 15% F&A Rate (Updated 5/23/25)

On May 2, the National Science Foundation (NSF) issued a Policy Notice implementing a standard 15% Indirect Cost Rate (or F&A rate) on modified total direct costs (MTDC) for Institutions of Higher Education (IHE). It also states that NSF funding opportunities issued after May 5, 2025 will include notice of this policy change. NSF asserts that this new policy overrides previously negotiated rates for all awards. A lawsuit contesting this F&A reduction is pending. NSF has agreed not to require the 15% cut pending a court hearing on June 13. 

Until further notice, PIs may continue spending on existing awards using the F&A rate shown on the Notice of Grant Award and approved budget. This policy change does not impact awards issued prior to May 5, 2025.

For proposals that need to be submitted immediately, PIs should continue to budget normally using our federally negotiated rates. More information will be shared as it becomes available.
 

Updated DoD Decision Matrix (Updated 5/14/25)

The Department of Defense (DoD) published an updated Decision Matrix to Inform Fundamental Research Proposal Mitigation Decisions, effective for all proposals submitted on or after May 9, 2025. The updates include removing the requirement for institutions to have a policy prohibiting participation in a malign foreign talent recruitment program, changing some of the dates that would trigger expected or suggested mitigation measures, and removing the distinction between “associations” and “affiliations.”
 

NIH Policy Change on Foreign Subawards (Updated 5/8/25)

On May 1, the National Institutes of Health (NIH) issued an Updated Policy on Foreign Subawards that significantly changes how foreign collaborations will be structured in NIH-funded research. Existing awards are not currently affected, but starting May 1, 2025, NIH will not approve new foreign subawards or components under existing grants. Institutions receiving NIH grants will not be permitted to issue subawards to organizations based outside of the United States. The policy applies only to financial arrangements. It does not affect collaborations with foreign consultants or purchases of unique goods or services from international vendors.

For Principal Investigators:

• If your new project includes a foreign subrecipient, this change will require restructuring the collaboration as an independent subproject rather than a subrecipient.
• If your ongoing project includes a foreign subrecipient, a restructuring of the collaboration with the foreign entity will be required at the time of renewal or non-competing continuation.
• For studies that rely on international fieldwork or expertise (e.g., infectious diseases endemic to specific regions), replacing foreign components with domestic partners may not be feasible.

More information may be found in the May 8 memorandum from April Coon and David Hagen.
 

Executive Order on Improving the Safety and Security of Biological Research (Updated 5/7/25)

On May 5, President Trump issued the Improving the Safety and Security of Biological Research Executive Order (EO). This order pauses research that could make a naturally occurring pathogen or toxin more dangerous to American citizens and directs federal agencies to develop a new policy within 120 days. The new policy is intended to replace the 2024 Policy for Oversight of Dual Use Research of Concern and Pathogens with Enhanced Pandemic Potential (DURC-PEPP Policy) and supersedes its previously set May 6, 2025 implementation. 

This EO is far more broad reaching than the DURC-PEPP policy. All investigators conducting research involving infectious agents or toxins should review the EO and be prepared to evaluate the new policy when it is released to understand how their work will be impacted. The NIH has released a notice (NOT-OD-25-112) to specify that it intends to suspend ongoing funding in accordance with guidance developed under Section 3(b) of the Executive Order. Also, the NIH will not accept competitive applications for grants and cooperative agreements submitted for due dates after 5/7/25 and/or R&D contract proposals submitted to solicitations issued after 5/7/25 for dangerous gain-of-function research. Please read the notice and visit the University's DURC-PEPP webpage for more detail. 
 

NSF Award Terminations and Statement of Priorities (Updated 4/21/25)

On April 18, the National Science Foundation (NSF) issued a Statement of Priorities reaffirming its commitment to supporting research aligned with its mission and statutory obligations. This includes continued use of the Intellectual Merit and Broader Impacts review criteria, as well as emphasis on broadening participation in STEM in ways that "create opportunities for all Americans" that do not "exclude individuals or groups based on protected characteristics."

As part of this shift, NSF has also undertaken a review of its award portfolio and notified institutions of the termination of specific awards that the agency has determined no longer align with current NSF priorities. This action, effective immediately, was made under the “Termination and Enforcement” clause of NSF’s General Conditions (GC-1). At the University of Minnesota, six awards have been terminated as of April 18, 2025.

We are closely monitoring the situation, including any further guidance or implications this may have for active or planned proposals. NSF has already shared some guidance in its FAQs. 

More information may be found in the April 21 memorandum from April Coon and David Hagen. 
 

DOE Policy Flash to Implement a 15% F&A Rate (Updated 4/16/25)

On April 11, the Department of Energy (DOE) released a Policy Flash (2025-22) that instructs DOE contracting offices and grants offices to implement a 15% F&A rate for institutions of higher education. The memo stated that the DOE will no longer use a University's federally negotiated indirect cost rate and will instead use a standardized 15% indirect cost rate. DOE has said that they intend to terminate all existing awards that do not use the 15% rate, but that recipients will receive separate notice and guidance.

On April 14, a legal challenge contesting this F&A reduction was filed jointly by the American Association of Universities, the American Council on Education, and the Association of Public and Land-Grant Universities, along with several impacted research universities. And on Wednesday, April 16, the US District Court of Massachusetts issued a temporary restraining order that prevents the DOE from implementing the changes in the Policy Flash.

Until further notice, PIs may continue spending on existing awards using the F&A rate shown on the Notice of Grant Award and approved budget.

If a termination notice is received within the coming days or weeks from DOE or anyone other than SPA, immediately send it to your SPA Grant and Contract Office and copy April Coon ([email protected]) and David Hagen ([email protected]).

More information may be found in the memorandum from April Coon and David Hagen.
 

Stop Work Orders and Terminations and Associated Appeals (Updated 5/2/25)

As of May 2, the University has received 79 terminations or full stop work orders and there are additional partial orders impacting a project by stopping certain work, temporarily halting payments, eliminating outyear funding, or otherwise modifying the terms under which work can be conducted. Each communication is being evaluated to ascertain whether the University can legally “push back” on the specific action, given the evolving status of the temporary restraining orders and preliminary injunctions. Where a case can be made, and with the PI’s concurrence, the University will submit appeals.
 

NIH Rate Cut Continues To Be Paused (Updated 3/18/25)

On March 5, a preliminary injunction replaced the original February 21 temporary restraining order and extended the prohibition against NIH implementing a 15% F&A cap until further notice. The preliminary injunction applies to all institutions nationwide, and applies to both current and future awards. In addition, the existing federal appropriations Continuing Resolution (CR) for FY2025 includes the same language as in recent past years restricting NIH from altering the way they calculate F&A. This means that the University of Minnesota will continue to use our federally negotiated rates (e.g, 54% MTDC for on-campus research) in all proposals and awards, as well as continue to accept federally negotiated rates from our subrecipients.