Important Updates

New Executive Order Issued on Implementing DOGE in Federal Agencies

February 27, 2025

On February 26, 2025, the White House issued a new executive order on implementing DOGE in federal agency spending.  In order to transform federal spending, each agency must work with the Department of Government Efficiency (DOGE) to ensure transparent government spending. This executive order includes all “covered contracts and grants,” which means all discretionary spending on contracts, grants, loans, and related instruments.  However, it does exclude direct assistance to individuals (e.g., FEMA award to a person), payments related to immigration enforcement, law enforcement, the military, public safety, and the intelligence community, and other “critical, acute, or emergency spending, as determined by the relevant Agency Head.

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Court Issues Order Halting NIH Implementation of 15% Rate Change Notice

February 11th, 2025

A federal judge in the U.S. District Court of Massachusetts issued a temporary restraining order on Monday in response to a lawsuit filed by 22 state Attorney Generals (including NYS) seeking to halt the NIH implementation of the F&A rate change as part of NIH Guidance NOT-OD-25-068 announced on Friday, February 7, 2025.  The court order bars NIH from “taking any steps to implement, apply, or enforce the Rate Change Notice (NOT-OD-25-068) within Plaintiff States until further order is issued by this Court.”  The Court order is available here.

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NIH to reduce F&A rate to 15% on all current and future awards

February 10th, 2025

On Friday, February 7, 2025, the NIH issued Supplemental Guidance to the 2024 Grants Policy Statement indicating that effective immediately all current and future awards would have a standard F&A/indirect cost “of 15% across all NIH grants for indirect costs in lieu of a separately negotiated rate for indirect costs in every grant.”  The full NIH guidance is available here:  https://grants.nih.gov/grants/guide/notice-files/NOT-OD-25-068.html.

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