Feb. 3 updates to federal funding pause

The following message was emailed on Feb. 3 to deans, directors, Administrative Council, HR leads, associate deans for research and center directors.

Dear colleagues,

As you are well aware, there continues to be a great degree of upheaval at the federal level, even in the last few days, that has a direct impact on our research enterprise. A significant positive development came Friday evening in the form of a temporary restraining order (TRO) related to the Jan. 27 Office of Management and Budget (OMB) memorandum that said that federal agencies cannot pause funding obligations while the review is ongoing. Agencies that have canceled or not allowed funding draws should now be required to release those funds.

While the TRO is in effect, stop-work orders can only be issued on the basis of the applicable authorizing statutes, regulations and terms of the award or agreement, and may not be based on any recently issued executive order (EO) or the OMB Memo. Any stop-work orders issued since January 20, 2025, must be reviewed to determine whether they are covered by the TRO’s restrictions. Please contact the Office of Legal Affairs (OLA) at (608)263-7400 or caroline.marks@wisc.edu to arrange for timely review of a stop-work order.

Agencies are still allowed to conduct reviews under the existing EOs and any future EOs that may be issued. However, as noted, the TRO prohibits pausing funding based on the EOs or the OMB memo while the TRO is in force.

Please continue to follow Research and Sponsored Programs’ guidance relative to awards. For those stop-work orders not covered by the TRO’s restrictions, continue to abide by the terms under the stop-work order unless otherwise notified by OLA or the funding agency.

As a more general matter, we also note that many of the White House executive orders have used extremely vague language. Specific references have been made to diversity, equity, inclusion and accessibility (DEIA) efforts, as well as what is referred to as the “green new deal.” However, neither area has been defined. While the relevant executive orders are on hold under the TRO, that does not prevent other efforts to curtail current or future research in this space.

Implications for financial decision-making

Provost Isbell and Vice Chancellor Cramer provided guidance on Wednesday, Jan. 29 regarding limiting additional financial commitments on federal funds, including hiring and non-personnel expenses. Given the uncertain environment in which we find ourselves, we would like to address questions that have arisen regarding federal financial commitments.

Graduate student offers
In many programs, graduate student offers have already been issued or are pending. Graduate students are absolutely critical to our research and educational missions. We are not imposing any centrally-mandated reductions or pauses in graduate student funding offers for Fall 2025. The Provost’s Office and Graduate School will continue to coordinate with deans.

Hiring
Our guidance on hiring and renewing post-docs and other employees is similar to that of providing funding for graduate students. To be clear, we are not recommending a hiring freeze on either post-docs or others who would be hired on federal funds; however, given the uncertainties, we do urge reasonable caution about hiring that is elective, especially in areas that have been highlighted by the federal administration. Hiring should not take place on projects subject to stop-work orders that are not covered by the TRO’s restrictions.

In general, you should contact your dean or authorized center director with any questions. The Vice Chancellor for Research has delegated authority for many of these matters to center directors that report to the VCR. The Provost has delegated similar authority to the deans who may in turn choose how to delegate authority to their center directors, department chairs, and PIs as appropriate.

Non-personnel expenditures
Other non-personnel expenditures may proceed based on existing awards, under the purview of each school and college, except for those under a stop-work order.

It is likely that there will be further federal directives over the weeks and months ahead, as well as further legal action. These directives will affect both current and future awards. We will work to assess any possible funding gaps that are created by changes and delays in agency policies and procedures. We remain committed to assessing the impact of each directive, order and court decision related to our awards and the individuals who may be affected by them.

We expect continued uncertainty and ambiguity, and so we must aim to work together as effectively as possible in this challenging climate. We will continue to provide updates on the federal relations website as we have them.

We understand that times like this create a great deal of stress. Please avail yourselves of support resources such as our Employee Assistance Program if needed and ensure that your staff members are aware of these services.

Thank you for your continued efforts and collaboration, and for your commitment to the shared work that we do.

Dorota Brzezinska, Vice Chancellor for Research
Robert Cramer, Vice Chancellor for Finance and Administration
Charles Isbell, Jr., Provost and Vice Chancellor for Academic Affairs
Nancy Lynch, Vice Chancellor for Legal Affairs
Craig Thompson, Vice Chancellor for University Relations