Government Shutdown Information 2025

March 14, 2025

Oregon State University Community Members,

We are writing to assure you that OSU is closely monitoring the status of Congressional negotiations to fund federal government operations beyond midnight today. If funding legislation is not adopted by that time, federal departments and agencies will cease nonessential operations until funding is restored. At this time, there is no certainty that a funding agreement will be enacted in time to avoid a federal government shutdown.

Oregon State University receives significant federal funds for research, land grant programs and student financial aid. We are evaluating the possible impact of a government shutdown on all aspects of university operations and preparing for any possible outcome.

A short-term government shutdown will have limited impact on OSU educational services and financial aid programs. Most financial aid disbursements for winter 2025 have been made and are expected to continue for the spring term. If the shutdown extends beyond the spring term, there may be delays and we will further communicate any impact to students as we receive guidance from the federal agencies.

University officials remain in frequent communication with members of Oregon’s Congressional delegation and other federal leaders regarding the importance of ensuring government continues to operate without interruption.

For FAQs and more information on the implications of the shutdown on research and to access information that provides all federal agency shutdown contingency plans, visit the OSU Division of Research and Innovation website.

We remain hopeful that national leaders will take the necessary measures to avoid a government shutdown. We will keep you informed of further details regarding federal budgetary actions and their effect on OSU operations. As always, we are committed to minimizing the impact to OSU’s student success, research, and land grant mission.

Irem Tumer                                      Carla L. Hoʻā

Vice President for Research         Vice President for Finance and Administration

                                                            Chief Financial Officer

Takeaways

  • Negotiations in Congress to avert a federal government shutdown on March 15, 2025 remain ongoing.
  • The federal government sponsors about three-fourths of Oregon State sponsored research, education and outreach activities.  
  • Oregon State can sustain a short-term shutdown with limited impact to ongoing research projects, but certain projects will be immediately impacted.
  • OSU students will continue to receive financial aid disbursements for the current term.
  • A long-term shutdown will impact a wide range of research, education and outreach activities that are central to the mission of Oregon State University.

FAQ Regarding Federal Shutdown

The federal agencies and the Office of Management and Budget (OMB) have plans that guide their changes to operations in the event of a shutdown. Agency plans and impacts on operations will vary, but there are some consistent impacts to expect. Federal employees will cease routine activities in proposal processing, award issuance, program oversight and payments/accounting. Access to federal facilities and resources will cease, with some possible exceptions. Most ongoing federally sponsored research, education and outreach activities at Oregon State can continue without interruption for the short-term. More information about the types of activities that may be impacted by a shutdown, including impacts of a longer-term shutdown, are outlined in this document.

More information on federal agency plans for a shutdown can be found on the OMB website.

A short-term government shutdown will have limited, if any, immediate impact on OSU educational services and financial aid programs. Financial aid disbursements will continue for the current term and are not affected by the shutdown. If the shutdown extends beyond the current term, there may be delays and OSU will further communicate any impact to students as we receive guidance from the federal agencies.

The impacts of a shutdown on proposal submission have varied in past shutdowns. We recommend all principal investigators keep close attention to submission dates after March 14, 2025. Unless you hear otherwise from the agency, PIs should continue to plan to meet established deadlines for proposal submissions or reporting. Deadlines may be extended for some opportunities, but proposals will continue to be due unless the funding agency issues new guidance.  

Review of proposals by federal agencies will be delayed. 

Scenario 1: Project is selected for funding but the agency has not issued the award

The federal agencies will not issue new awards during the shutdown. A shutdown will cause a delay in projects selected for funding to receive an award but it should not impact their selection for funding. Projects that are time sensitive may be negatively impacted by this delay. After a shutdown is lifted, there will be a delay in the federal government resuming normal operations and additional delays should be expected.  

Scenario 2: Federal agency has issued the award and OSRAA is processing it.

OSRAA is prioritizing awards received that may be impacted by a shutdown. The vast majority of awards issued prior to March 15 will continue to be processed and indexes will continue to be issued for awards that have been received.

  1. Short-Term: Most federally sponsored research, education and outreach activities are funded through grants and cooperative agreements and will continue without interruption in the short-term.  
  2. Federal Contracts: Although most OSU sponsored programs are grants or cooperative agreements, we have a handful of Federal Contracts which may be immediately impacted. Certain Federal Contracts will receive a Stop Work Order. With limited exceptions, Stop Work Orders require the immediate stop of all project work and all expenses. OSRAA will be in immediate contact with PIs who receive a Stop Work Order. If you receive a Stop Work Order, please forward it to OSRAA at [email protected].
  3. Unless directed by a stop work order or other agency notice, or university notice, federally funded project personnel may continue working during the shutdown.
  4. Federal Facilities and Resources: Access to federal facilities will be extremely limited. Most research taking place on federal sites will be impacted. Most agency staff will not be working and will not be available for inquiries.
  5. Project Changes: Federal agencies will not process future funding increments, supplements or no-cost-extensions.  
  6. Progress Reports: PIs should continue to meet all reporting requirements as best as possible. Agency websites will likely be active and accept submission of reports.

Most federal agencies may not issue any payments for federal research that OSU is performing during the shutdown period. The university will use its cash reserves to sustain delayed reimbursement for a period of time. A prolonged shutdown without timely federal reimbursement will force OSU to consider curtailment measures to reduce the negative cash flow.  

The lack of federal funding in a prolonged federal shutdown will have greater impact on our sponsored research, education and outreach activities as well as our faculty and students who perform those activities. More information will be issued if OSU needs to further consider or implement curtailment measures.

Other Resources and Informative Links:

If you have additional questions or specific project concerns, please contact [email protected].