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Government Funding & Policy Update: What’s Going On?

by | Feb 24, 2025 | State of Funding Market

At Grant Engine, we know what it feels like to be in your shoes. The uncertainty of shifting government policies, the pressure of tight deadlines, and the challenge of securing critical funding: these are struggles we’ve faced just like you, time and time again.

We understand the stakes, and that’s why we approach every funding opportunity with the unwavering focus that is needed to secure the award. Because we’re in it together. You’re not navigating these changes alone. We’re here with you, ensuring you stay ahead and succeed.

The political landscape in Washington is shifting rapidly, with significant implications for federal funding, agency policies, and government agency actions. Recent developments in executive and legislative actions are shaping the flow of government funding, creating both opportunities and challenges for businesses and research institutions alike.

Key Policy Moves & Legislative Actions

In just the past few weeks, multiple policy shifts have altered the trajectory of government spending:

  • January 27: The Trump administration implemented a freeze/unfreeze policy, sending a “Fork in the Road” email to two million federal employees, prompting voluntary resignations. Only 3% (75,000 employees) accepted the offer.
  • February 6: A federal judge blocked the resignation initiative, ensuring continuity for affected employees.
  • February 20: The Senate passed Concurrent Resolution 7 (S.Con.Res.7), allocating $342 billion over four years for border security and military funding, while extending existing income tax cuts. The bill also requests a $1.5 trillion budget reduction, amounting to a 22.5% cut in the federal budget.
  • February 21: A shakeup in military leadership saw both the Chairman of the Joint Chiefs and the Chief of the Navy replaced.

These actions highlight a broader shift toward budgetary realignment and restructuring across federal agencies.

Is Government Funding Still Flowing?

Despite administrative shake-ups and budgetary debates, both NIH and DoD funding streams remain open. However, there are notable trends in award volume and timing:

NIH & DoD funds are still available, though disbursement in the last three weeks has been lower compared to previous years. Future funding availability hinges on the final resolution of legislative budget debates and potential judicial interventions.

What’s Up Ahead?

Looking forward, stakeholders should prepare for fluctuations in funding volume and award timelines. Key considerations include:

  • Potential delays in grant approvals due to administrative and legal hurdles.
  • Changes in agency budget priorities following legislative decisions.
  • Possible future reductions in indirect cost rates, depending on ongoing litigation outcomes.

With policy shifts in motion, companies and researchers must stay proactive, ensuring they align their funding strategies with emerging federal priorities. Staying ahead of these changes will be critical for securing and maintaining government-backed funding in an evolving regulatory environment.

 

At Grant Engine, we are your strategic partner in securing the funding that fuels your success. We are prepared, resilient, and ready to help you navigate the evolving funding landscape with confidence.

If you have any questions or would like to explore how these changes impact your funding strategy, reach out to our team. Together, we will continue driving innovation forward. To learn more about how Grant Engine can support your innovation funding journey, text us at (650) 885-9872 or email us at greatscience@grantengine.com or contact us through our website below.