Sent to all federal PIs, research associate deans, other academic leaders, and central and departmental research administrators from SPA leadership.
Dear Research Colleagues,
We're writing to share the University of Minnesota’s plans and resources in the event of a federal government shutdown. If a continuing resolution or full FY26 federal budgets are not passed by midnight on September 30, the federal government will shut down on October 1.
At this time, the Office of Management and Budget (OMB) has not provided final guidance to federal funding agencies about what actions they may or may not take during a shutdown. However, based on existing federal agency contingency plans and current federal guidance, here's a breakdown of what to expect:
Current Projects and Finances
- Spending on Active Grants: You can continue to spend existing funds on active grants and cooperative agreements until further notice. For contracts and other transaction agreements, spending can also continue unless the funding agency issues a stop work order.
- Payments: The University will continue to submit invoices; however, payments from federal agencies should not be expected during the shutdown. The University's financial system will still allow project expenses to occur, creating a temporary deficit until federal reimbursement is received. Payments for outgoing subawards will continue for now but may be suspended during an extended shutdown. In this case, PIs will be notified.
Proposals, Awards, and Approvals
- Proposal Submissions: Federal submission systems should remain functional, and deadlines still apply. However, help desks will likely be closed, so if you encounter an issue, you may only be able to submit a help ticket without receiving an immediate response. (Even without a response, the help ticket will show that an on-time submission was attempted.)
- New Awards: New awards, renewals, and supplemental funding will not be issued by federal agencies during a shutdown.
- Prior Approvals: The University can submit prior approval requests, but agencies won't be able to respond until the shutdown ends.
Reporting and Meetings
- Technical and Financial Reports: The University's Sponsored Financial Reporting (SFR) will attempt to submit financial reports, and if an agency’s system is not available, will hold the reports until they do become available. PIs should attempt to submit technical reports. If an agency's electronic reporting system is unavailable, or you have an issue with a technical report submission, file a help ticket to document your on-time attempt.
- Meetings and Visits: All in-person and virtual meetings, including peer reviews, study sections, and agency visits, are expected to be canceled or postponed.
Exceptions
Some exceptions may apply if an agency has multi-year funding or if a project is deemed critical for public health or safety. In these cases, certain activities, such as prior approvals or payments, might continue. Additionally, if the University is a subrecipient of a grant, funding may continue at the discretion of the prime recipient.
If you have questions about a specific sponsored project or receive a stop work order, please contact your SPA grant and contract officer (GCO).
Please visit the Federal Government Shutdown Guidance website for more guidance and impacts, as well as emerging information from OMB and individual agencies.
Sincerely,
April Coon, Director, Sponsored Projects Administration
David Hagen, Director, Office of Cost Analysis