September 19, 2023
This message is distributed to Academic Department Chairs and Deans, Academic Assistant Deans, Senate Faculty, Academic Unit Directors, Researchers, and Academic Business Officers and ASC Directors. (Click here to view description of distribution groups.)
The following is being sent on behalf of the Office of Research
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This message provides planning guidance to researchers relating to the possibility of a federal government shutdown at the end of September, when the current federal budget expires. A shutdown is different from a continuing resolution (CR) where a temporary spending bill is in place that keeps the federal government operating.
If a shutdown occurs, the administration of grants, cooperative agreements, and contracts will temporarily cease for impacted federal agencies. Distribution of federal funding will be impacted. Each federal agency will have their own unique procedures and protocols, and will issue contingency plans which will be posted on a dedicated website as they become available. We can generally expect the following:
- Agencies will be prohibited from signing new grants or contracts.
- Grant funding already issued to campus will not be impacted.
- Most agency staff will not respond to any inquiries received, including about upcoming deadlines, proposal preparation, and applications.
- The review process for proposals will be delayed although deadlines may still be enforced unless an agency posts alternative instructions.
- No continuing funding increments will be awarded.
- Grant payments to the campus could be disrupted.
- Principal Investigators should be able to submit annual and final project reports.
- No-cost extensions will likely not be processed until normal agency operations resume, and federal funds cannot be obligated for expenses that occur beyond the award end date.
- Supplemental funding requests will not be processed and awarded until normal operations resume.
In the event of a shutdown, any formal stop-work orders received from a federal agency should be forwarded immediately to an officer and analyst in your Sponsored Projects Team. If such a suspension notice is received, all work on the project needs to stop and personnel reassigned since expenses will generally not be reimbursable by the federal agency.
In addition, the attached guidance was developed by UCOP to help campuses prepare to mitigate impacts from a shutdown and to limit disruptions to research activities. It includes additional guidance regarding:
- Projects requiring access to federal facilities or personnel
- Fellows receiving direct pay from a federal agency
- Potential layoffs and notification timelines
- Other potential student impacts to consider
For information about how a shutdown could affect a specific extramural federally funded project, please direct your questions to an officer or analyst in your Sponsored Projects team. For billing and close memo questions, please contact EMF.