Latest Federal Funding Updates
Update: Temporary Restraining Order prohibiting DOD from implementing 15% Rate Cap Policy
A federal judge issued a prohibiting the Department of Defense from 鈥渋mplementing, instituting, maintaining, or giving effect to the immediately effective portions of the Rate Cap Policy, i.e., those portions implementing a 15% cap for all awards issued on or after June 12, 2025, including but not limited to rejecting or treating adversely proposals for DOD funding submitted at universities鈥� negotiated rates rather than the 15% rate."
6/17/25: Message From VP Twilley
We continue to experience uncertainty related to indirect costs (IDC) recovery. On June 12, the U.S. Department of Defense (DoD) issued a limiting IDC reimbursements to 15% on future and existing DoD grants. A has been filed similar to the lawsuits filed for the other federal agencies. Due to the pending legal action, 海角社区 will continue to use our previously agreed upon rate for DoD proposals. Please contact the Office of Sponsored Programs at osp@lsu.edu if you are contacted to renegotiate IDC.
In addition, the executive branch has proposed deep cuts to research funding in 2026鈥�56% to NSF, 43% to NIH, 24% to NASA, and 54% to EPA. These numbers are deeply concerning, but not final. The House and Senate are currently developing the 2026 budget and we remain optimistic and actively engaged with our peers, national associations, and policymakers in advocating for higher education and 海角社区. This week, 海角社区 leadership will travel to Washington D.C. to articulate the critical importance of sustained federal research funding to 海角社区 and Louisiana.
鈥敽＝巧缜� Vice President of Research & Economic Development Robert Twilley
Award Guidance
If you receive a Termination or Stop Work Order, please immediately forward to osp@lsu.edu, stop working on the project and do not incur any additional expenses.
If you are uncertain if something is a notice of termination, please forward it to osp@lsu.edu for review and advice.
Some agencies have issued stop-work orders on grant activities associated with recent executive orders. However, many of the orders have been modified or rescinded by court injunctions or temporary restraining orders. To determine if your grant activities are impacted, it is important to frequently review the for the most up-to-date information on the executive orders, litigations, and agency communications. You can also contact research@lsu.edu or osp@lsu.edu if you are unsure.
The terms and conditions of executed awards remain enforceable. Where possible, work under executed awards should proceed as usual.
FAQs
Facilities and administrative (F&A) costs鈥攁lso referred to as indirect costs鈥攁re costs for essential research infrastructure and administration that are needed beyond individual projects. They include lab and equipment maintenance; services such as utilities, IT, and hazardous waste removal; and鈥攊mportantly鈥攔esearch support staff who help with grant administration, safety, and regulatory compliance. Without F&A, universities would need to secure alternative funding to cover these real and necessary costs or reduce research activity.
No. F&A does not generate 鈥渆xtra鈥� or discretionary funds. Cutting F&A shifts real and necessary costs onto universities, reducing research activity.
海角社区 relies on F&A reimbursement to maintain research infrastructure, support faculty and student researchers, and sustain research excellence. Cuts could:
- Hinder 海角社区鈥檚 growth as a leading research institution.
- Threaten funding for critical research centers, like 海角社区鈥檚 seven NIH Centers of Biomedical Research Excellence (COBREs).
- Limit faculty and student access to the essential resources they need to conduct groundbreaking work.
- Weaken 海角社区鈥檚 ability to attract the best and brightest faculty and students.
- Slow critical biomedical advancements and economic development in Louisiana.
- Jeopardize 海角社区鈥檚 goal of achieving Top 50 research university and AAU status.
F&A cuts impact:
- Students who will have less access to research opportunities, scholarships, and assistantships.
- Faculty who will have less support and reduced access to well-maintained, secure research facilities.
- The Louisiana economy, which will see fewer jobs, reduced investment, and slower innovation in life-sustaining fields like healthcare, energy, and agriculture.
- Everyone, since reduced research funding delays medical discoveries and scientific advancements.
海角社区鈥檚 research enterprise brings in hundreds of millions of dollars in federal research funding each year, driving economic growth and innovation in Louisiana and across the United States. Cutting F&A reimbursements will not only hurt 海角社区 but also weakens the state鈥檚 ability to attract top talent and hinders advancements that improve lives statewide.
Have Questions?
If you are a researcher with questions or concerns about ongoing projects, contact research@lsu.edu