Answers to questions regarding the status of federally funded sponsored projects
University leaders are closely following changes to federally-funded sponsored programs. For the latest university-wide updates, visit the RSP website and University Relations website.
(updated 2/10/25)
Current guidance on NIH funded projects, following NIH supplemental guidance on indirect cost rates on Feb. 7 , 2025
Please keep in mind that this guidance is for the short term. This is a rapidly evolving situation, and we will share updates as soon as we have more clarity.
Ongoing NIH Awards
- Already Established at the Negotiated Rate (e.g.,55.5%): Question: Can spending continue as planned for existing awards?
- Guidance: Yes. Awards already set up in UW’s financial system may proceed under the prior guidance issued by UW leadership.
- Modifications: Question: Can we process modifications for ongoing awards?
- Guidance: If the modification incorporates the established federally negotiated F&A rates – yes. If the modification incorporates the new 15% rate – no. For the moment, we need to hold off on accepting any award notices that include the 15% rate.
New NIH Awards
- Notices Received Before the New NIH Guidance: Question: Can these awards be set up, and can spending begin?
- Guidance: Yes, as long as the award notice explicitly states that the grant was awarded using the federally negotiated rate (e.g., 55.5%) or other previously identified rates (e.g., 8% for training grants). These awards should be set up at that rate, and work can commence following UW leadership’s prior guidance.
- Notices Incorporating the New 15% Rate (Issued on or after February 10th): Question: Should these awards be set up, and can spending begin?
- Guidance: No. We are not able to support our research with the 15% rate, and RSP will not set up new NIH awards that incorporate this rate, nor authorize pre-award costs or advance funding. Please contact RSP with specific questions.
Proposals
- For new proposals that have not been submitted to NIH: Question: What rate should be applied to NIH proposals?
- Guidance: Continue to use the federally negotiated F&A rates (e.g., 55.5%) until further notice.
Using Federal Funds
Q: Who should I contact if I have questions about specific situations?
A: Please reach out to your department chair or center director for case-specific guidance. Additionally, Associate Dean Troy Runge (trunge@wisc.edu) is coordinating information related to federal research funding for CALS.
Using Non-Federal Funds
Q: What are the potential risks of using non-federal funds?
A: If federal reimbursements or new awards are delayed, non-federal funds may become critical for sustaining personnel and research operations. Overcommitting these funds now could limit future options.
Q: Who should I consult before reallocating non-federal funds?
A: Consult with your department leadership and financial administrators to ensure strategic decision-making and long-term financial sustainability.
Faculty Hiring
Q: Will faculty hiring be affected by the federal funding uncertainty?
A: Ongoing faculty searches, including RISE, will continue as planned since they are not directly tied to federal funding. However, new faculty searches will need to be reconsidered due to the current fiscal uncertainty. Any decisions on initiating new searches will be made based on evolving financial conditions and institutional priorities.
Q: Who should I contact regarding faculty hiring decisions?
A: If you have questions about a specific faculty search or hiring plans, please consult with your department leadership or Associate Dean Heather White (heather.white@wisc.edu) for guidance.
Communications and Updates
Q: How will I receive updates on these restrictions?
A: CALS and campus will continue to provide updates on federal research funding. Additional information will also be shared by University Relations.
Q: What should I do if I receive a federal agency notice about funding changes?
A: Any communications related to stop work orders, delays in payments, review panels, or new awards should be shared with RSP at rspinfo@rsp.wisc.edu.