The Research Policy Dispatch

The government is shut down. What does it mean?

When you hear “shutdown,” it isn’t the entire federal government and budget grinding to a halt — it’s a lapse in annual discretionary spending.

The federal budget has three main components:

  • Mandatory spending: Programs like Social Security, Medicare, and Medicaid that run on autopilot unless Congress changes the law. These are unaffected by a shutdown. (About 61% of the total budget)

  • Discretionary spending: The annual portion Congress negotiates — covering defense, education, scientific research, and public health. This is the battleground for appropriations fights, and the only part of the budget where a shutdown can occur. (Roughly 30% of the total budget)

  • Net interest payments: What the U.S. pays servicing the interest on the nation’s debt — not optional, nor negotiable. (About 9% of the total budget).

For research administrators: NIH, NSF, and other science funders live squarely in the discretionary bucket. That means a shutdown has tangible effects: grantmaking stops, review meetings are postponed, new awards can’t be finalized, and program officers are often furloughed and unavailable.

How does this process actually work?

Congress doesn’t pass “the budget” as one giant bill. Instead, discretionary funding is divided into 12 separate appropriations bills, each covering a different part of the government — from Defense to Agriculture to Labor–HHS–Education (where NIH funding lives) to Commerce–Justice–Science (where NSF lives). In practice, Congress often bundles these into a single omnibus package or a smaller minibus to move them across the finish line.

In theory, all 12 bills are supposed to be passed by October 1, the start of the fiscal year. But when Congress can’t agree and approve the package(s) out of both chambers there are two paths forward:

  • A continuing resolution (CR) may keep agencies running temporarily at prior-year funding levels, or

  • If no stopgap is passed, funding authority lapses — and we end up in a shutdown.

That’s where we are this week: a lapse in the bills that fund discretionary programs, leaving research agencies frozen.

The most recent NIH budget is $48.3 Billion. The Senate passed out of committee a $48.7 Billion appropriation, while the House passed a $48 Billion budget. Both were far less than the President’s request of $28.9 Billion (~40% cut).

For Research Administrators

NIH Policy Notice and OMB Updates

NIH has highlighted existing requirements for Senior/Key Personnel training on Other Support disclosure and announced the rescission of prior research security guidance, while OMB released a memo outlining FY2027 R&D budget priorities across critical technologies.

  • NOT-OD-25-133: NIH Announces a New Policy Requirement to Train Senior/Key Personnel on Other Support Disclosure Requirements

    Effective October 1, 2025, NIH recipients must train all Senior/Key Personnel on disclosing all research activities and affiliations in the Other Support form. This training complements existing policies and ensures researchers understand their responsibility to report all resources supporting their research, regardless of monetary value or institutional affiliation.

  • NOT-OD-25-161: Update: Recission Notice re: Implementation of NIH Research Security Policies

    The NIH notice NOT-OD-25-154 (released 9/11/25), which outlined new research security policy requirements for institutions and individuals in alignment with federal mandates, has been rescinded as of September 29, 2025, and replaced by NOT-OD-25-161. The rescinded notice detailed compliance, training, and certification requirements for research security and prohibitions related to malign foreign talent recruitment programs.

  • M-25-34 I NSTM-2: Fiscal Year (FY) 2027 Administration Research and Development Budget

    This memo outlines the Trump Administration’s research and development (R&D) budget priorities for Fiscal Year 2027, emphasizing American leadership in critical technologies like AI, quantum science, energy, national security, health, biotechnology, and space. It also details five cross-cutting actions to revitalize the U.S. science and technology enterprise, including restoring "Gold Standard Science," building the STEM workforce, expanding research infrastructure, strengthening the S&T ecosystem, and focusing on high-value research efforts.

    It’s important to note that OMB memos serve as policy signals only: while the administration can state its priorities, implementation generally depends on Congress as the authorizing and appropriating body.

Atlas subscribers can learn more on the Action Categorization quick link to explore 22 common types of official government actions—executive orders, memos, legislation, and more—with definitions, functional categories, impact areas, and relevance to research and funding.

Subscriber Highlights

The Research Policy Atlas Corner

Most editions of the Dispatch will feature practical tools, resources, and other assets for Research Policy Atlas subscribers. This week in the Resource Toolbox I want to highlight slide decks to explain two important NIH changes. These resources are available for download and you can customize them for department education and trainings.

📂 Resources Toolbox → Explainers → Slide Decks

Atlas Quicklink: Resource Toolbox & Workcenter

  • Highlighted Topics: related to NOT-OD-25-143 NIH will stop posting NOFOs in the Guide for Grants. If you work in preaward or research development it is critical to understand these changes.

  • Foreign Subawards Update NOT-OD-25-104: a customizable presentation covering new compliance requirements and processes for foreign subawards.

For additional documents and information, search ‘Notice of Funding Opportunity (NOFO)’ and ‘Foreign Subawards’ in the Policy Context Search to find source documents and resources you can use to learn more or supplement with additional details.

Final Thought

All great changes are preceded by chaos.

Deepak Chopra

You got to the end! Thanks for reading along. I look forward to sharing future editions with you—and to navigating the “spirit of the time” together.

Until next time,

Sarah Trimmer, MPH
The Research Policy Dispatch

Clear signals. Confident action.

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