Updates on Federal Actions Related to Research

Email Updates

The following message was sent to graduate students, tenure track and research faculty, department grant administrators, OVPRI centers and institutes, core facility staff, Government and Community Relations, Office of General Counsel, and OVPRI staff on Wednesday, April 15, 2026.

Thank you for joining us in Celebrating Research and Innovation last week. I was delighted to see many familiar faces at the events, but also new ones. A consistent refrain from the week was the expression of wonder at the myriad ways research and innovation are infused into every corner of the UO. I’m proud to say that the week of events achieved its goal: Bringing together our community and recognizing its efforts.

The Shared Responsibility of the Federal Budget—And How It Explains Funding Delays

On April 3, the White House Office of Management and Budget (OMB) released the 2027 President’s Budget Request, also known as the “skinny budget.” The budget proposes additional funding increases for the Department of Defense by 40% from 2026 levels while cutting $73 billion from non-defense programs (a 10% reduction). You can find a detailed analysis of impacts to research on the Association of Public and Land-grant Universities website.

It’s important to note that the federal appropriations process is a shared responsibility between the executive and legislative branches. The President’s Budget Request is essentially a statement of priorities. But Congress works from the prior year’s budget to advance the twelve appropriations bills that will make up the annual budget, taking the skinny budget as a recommendation.

During the fiscal year (FY) 2026 appropriations process, Congress largely rejected the funding reductions called for by the skinny budget. Once Congress approves the budget, federal agencies prepare spending plans, which are sent to OMB under the assumption that the funds will be dispersed once the plans are reviewed and approved. OMB has the authority to manage the way the funds are apportioned (over time, by specific program or purpose, etc.).

OMB, through its frequent use of the “Category C” action—which delays spending appropriated funds in the current year by use of “binding apportionment footnotes” and sets aside those funds for future fiscal years—is using the budget implementation process to attempt to reassert the Trump administration’s priorities. And that’s where we are right now for some agencies. An article from the publication Lawfare provides a thorough explanation of this nuanced issue.

To that end, we are experiencing an unusual delay in receiving funds for accepted research proposals. Until OMB approves the spending plans and subsequently disperses funds, agencies are required to operate under the appropriations levels proposed in the skinny budget instead. However, there is a point at which the research proposals approved in the FY26 budget are cleared through for funding to make way for the FY27 budget, so we may receive funding for approved proposals in a rush near the end of the federal fiscal year in September.

While this situation is frustrating, we are resisting speculation and instead continue to monitor and follow the appropriations process.

The Social, Behavioral, and Economic Sciences Directorate

The FY27 skinny budget, which, again, is primarily a messaging document, proposes dismantling the National Science Foundation’s Social, Behavioral, and Economic Sciences (SBE) directorate. There has been recent reporting that actions are already underway to reduce SBE funding. We urge the research community to remember that formal dismantling of an NSF directorate would require congressional approval. Additionally, we are already seeing a ramping up of advocacy efforts around preserving SBE, and we continue to work with the UO’s Government and Community Relations staff to advocate for sustained funding for social sciences, behavioral, and economic research funding.

SBIR/STTR Programs Reauthorized

We end with good news: The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs have been reauthorized. Those programs provide vital early-stage grant funding to help innovation-based startup companies accelerate toward commercialization and growth.