Latest Federal Funding Updates
COGR President Matt Owens on White House Executive Order "Improving Oversight of Federal Grantmaking"
Matt Owens, president of the Council on Governmental Relations (COGR), issued a strongly worded statement on August 8 in response to the White House’s Executive Order on August 7, which included policy guidance to federal agencies on grantmaking and grant oversight processes, considerations for discretionary awards, limitations to the reimbursement of facilities and administrative (F&A) costs, and broadened authority to terminate existing and future discretionary grants.
COGR represents more than 230 research universities, affiliated medical centers, and research institutes and provides guidance on how federal policies and regulations impact research institutions.
Our current guidance for LSU researchers and administrators is to refer all communications from funding agencies related to, or resulting from, the Executive Order, such as potential policy changes or use of alternative F&A rates, to the Office of Sponsored Programs at osp@lsu.edu. OSP will provide guidance to the LSU research community on how to respond in consultation with LSU leadership.
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 However, many of the orders have been modified or rescinded by court injunctions or temporary restraining orders.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 Council on Governmental Relations 2025 Administration Transition Information & Resources website 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—also referred to as indirect costs—are 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—importantly—research 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 “extra” or discretionary funds. Cutting F&A shifts real and necessary costs onto universities, reducing research activity.
LSU relies on F&A reimbursement to maintain research infrastructure, support faculty and student researchers, and sustain research excellence. Cuts could:
- Hinder LSU’s growth as a leading research institution.
- Threaten funding for critical research centers, like LSU’s seven NIH Centers of Biomedical Research Excellence (COBREs).
- Limit faculty and student access to the essential resources they need to conduct groundbreaking work.
- Weaken LSU’s ability to attract the best and brightest faculty and students.
- Slow critical biomedical advancements and economic development in Louisiana.
- Jeopardize LSU’s 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.
LSU’s 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 LSU but also weakens the state’s 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