Guidance on Federal Sponsored Projects in the Event of a Federal Shutdown

September 29, 2025

Dear Faculty,

The University has received updates from several federal sponsors regarding the potential impact of a government shutdown. Below, we have outlined essential information on how this may affect your federally sponsored projects.

1. Can I continue working on currently funded federal projects?

Yes. Work should continue for all federal sponsored projects that have already been funded unless the funding agency provides instructions stating differently.

At this time, all programs are expected to continue operating as usual. However, should a shutdown occur, researchers and grant-supported staff may experience delays if their work involves federal sites, such as facilities operated by the U.S. Department of Agriculture or federally managed parks.

If a work-stop notice is received, promptly forward it to the Office of Grants and Contracts (grantsandcontracts@utrgv.edu). We will provide additional guidance for managing subrecipients as necessary. While most grants will likely not be suspended, this could occur with federal contracts or cooperative agreements, particularly if the shutdown extends for a significant period.

 2. Do I need to submit reports or other required documents during a shutdown?

Yes, you are still responsible for preparing and submitting all required reports. If the agency’s electronic submission system is operational, please continue to submit reports through the usual channels. If the system is unavailable, contact your Grants Specialist for specific guidance from the agency.

In the absence of agency guidance, you may choose to either email the report to Grants and Contracts or hold for submission until the agency resumes operations. Please note that in some cases, even if you submit reports by mail or email, you may be required to upload them to the federal system once it is back online to demonstrate compliance with reporting deadlines.

The Division of Research will not accept or process no-cost extensions (NCEs) during a shutdown, and investigators will need to plan for other sources of funding.

3. What is the status of federal proposal and award electronic systems?

The status of federal proposal and award management systems (e.g., NIH eRA Commons, G5) is uncertain during a shutdown. It is unclear whether grant submission deadlines will be extended, and we recommend continuing to prepare proposals according to the original schedule.

Should the systems remain in operation, OSP will proceed with submissions. However, please note that support services (e.g., Help Desks) may be unavailable, and agency personnel will not be reviewing proposals unless they are related to authorized shutdown activities.

4. Will I receive new awards or funding during a shutdown?

No. During a shutdown, you should not expect to receive new awards, funding, time extensions, or any necessary approvals from federal agencies.  Actions requiring approval (e.g., time extensions or rebudgeting) should generally be avoided, as the university will not assume financial risk for expenses that may not be reimbursed afterward. Pre-award spending for new awards will not be approved. However, pre-award spending for ongoing or renewal awards may be considered if the PI or Dean agrees to take on the financial risk.

Given the uncertainty of the duration of a shutdown, caution is strongly advised before making any financial commitments.

5. Will the University receive payment for work performed during a shutdown?

The University may experience delays in receiving payments for work completed both before and during a shutdown. Drawdown systems should continue to operate --as these are previously appropriated funds and use automated systems. Delays may occur in requests for reimbursements and release of payments by sponsors may also be impacted until normal operations continue. 

Based on current federal guidelines, we anticipate that work on already funded projects, where no additional federal approval or intervention is required, will be reimbursed once a shutdown concludes.

Questions:

Any questions or concerns regarding new federal proposal applications, current federal awards, or financial inquiries may be sent to the following offices.

• For any questions/inquiries regarding proposals and federal awards, please contact the Office of Sponsored Programs at sponpro@utrgv.edu.
• For any financial questions regarding your existing award, please contact the Office of Grants and Contracts at GrantsandContracts@utrgv.edu.  
• For any questions regarding payments or drawdowns, please contact the Office of Grants Accounting at GrantsAccounting@utrgv.edu. 

As new updates become available and are shared with our offices, we will promptly share relevant information and notifications with the campus community. We remain committed to supporting you and will continue to provide guidance to ensure your projects move forward with minimal disruption.

Sincerely,

Thomas B. Spencer, PhD, MBA 
UT Rio Grande Valley | 956-665-7477
Senior Associate Vice President: Research Operations   
Authorized Organization Representative (AOR) & Signing Official (SO)