Preparing for a Potential Federal Government Shutdown
Dear Colleagues,
The U.S. government’s Fiscal Year (FY) 2025 concludes tomorrow, Sept. 30, 2025, but Congress has not yet passed an FY26 budget or approved a temporary funding bill to sustain federal operations until a new budget is enacted. Failing to approve either bill by Sept. 30 may result in a shutdown of the federal government. If this occurs, there could be impacts to University of Maryland, Baltimore (UMB) operations that are supported by the federal government.
UMB is taking steps to reduce the potential impact on our research programs. Below is a summary of actions concerning a possible federal government shutdown and its effects on federally funded contracts, grants, cooperative agreements, and sub-awards.
- Proposal Submissions: Principal Investigators (PIs) should continue to prepare proposals in response to federal notices and adhere to published deadlines. If agency portals are live, Sponsored Programs Administration (SPA) will continue to process and submit new applications. However, during a shutdown, agency systems might only accept and store applications; they cannot process applications further until funding and normal business operations are restored. Proposal processing and review will resume only after the shutdown ends. If agency portals are offline, SPA will make submissions as soon as they reopen. Please note that during a shutdown, agency help desks may not be available.
- New Awards: No new federal awards or award modifications will be issued by funding agencies until normal business operations are restored.
- Current Funding: For active federal awards, PIs must follow agency guidelines potential shutdowns. Additionally, work should continue only if UMB has already received funds for prior work completed on the grant. If award funds have not yet been received, PIs must consult with their department chair or dean before continuing work. If a Stop-Work Notice or similar notification has been received from an agency, PIs must follow those directives. PIs must consult their department chair or dean before engaging in any major financial commitment (hiring, animal purchase, clinical trials, etc.). A dean’s approval to continue work or to procure for the grant signifies the dean's willingness to absorb the risk of not being reimbursed.
- No-Cost Extensions (NCEs): NCEs likely will not be granted during a government shutdown. PIs with awards that are currently set to expire in the month following Sept. 30 should contact Jill Frankenfield (SPA).
- Payments: Agency payment systems most likely will not be available and payments will not be processed.
- Access to Federal Facilities: UMB personnel who are assigned work duties or have business meetings at federal facilities may not, in many cases, be allowed to enter the facilities. Required actions in such instances will need to be reviewed on a case-by-case basis. Faculty working at a federal agency on an Intergovernmental Personnel Act agreement should immediately contact the agency to determine next steps.
UMB’s Issues Management Advisory Group (IMAG) is closely monitoring this situation and agency notices. Jill Frankenfield (SPA) and Laura Scarantino (Sponsored Projects Accounting and Compliance) will continue to provide guidance to UMB’s research deans, PIs, research administrators, and others as needed. Should the federal government experience a shutdown, IMAG will revisit UMB’s approach every two weeks for the duration and adjust as needed.
Sincerely,
Patrick O’Shea, PhD, MS
Vice President for Research