With the government funded on a continuing resolution through December 11th, Members of Congress are largely turning their attention to the November elections while also planning for the lame-duck legislative period that will close out the 119th Congress. When the 120th Congress commences in January 2027, it is a clean slate for legislation, committee assignments, nominations, congressional leadership teams, and other business pending before Congress, which typically motivates Congress to push to finish last-minute business during the lame-duck period. Meanwhile, federal agencies are working hard to obligate their FY2026 funding before the end of the federal fiscal year on September 30th. The trend of making fewer, larger awards is seen across the federal research agencies. While some agencies have begun hiring again, the federal research agencies are largely still grappling with reduced staffing levels which is complicating efforts to close out the fiscal year while developing a slew of new administrative policies and funding priorities as directed by the White House.
U.S. Congress
Continuing resolution funds government through December 11 and delays OMB grants rule
President Trump signed a continuing resolution in early September that funds the federal government through December 11, 2026, giving Congress additional time to complete work on Fiscal Year 2027 appropriations. Of particular significance for the research administration community, the law also prevents the Office of Management and Budget (OMB) from finalizing its proposed Uniform Grants Regulation, or a substantially similar rule, on or before December 11. The provision delays, but does not dispose of, the proposed overhaul. OMB may continue reviewing comments and developing a final rule, and the proposal could move forward after the statutory pause expires. Research administrators should therefore continue tracking both the appropriations process and OMB's next steps. Read more from AIP FYI.
Congress scrutinizes NIH-Department of War interagency funding agreement
A newly disclosed interagency agreement between the National Institutes of Health (NIH) and the Department of War has prompted congressional scrutiny over whether NIH funding could be used for defense-related biodefense activities. House Appropriations Committee Ranking Member Rosa DeLauro has argued that the agreement could divert billions of dollars appropriated for biomedical research. House Appropriations Committee Chair Tom Cole has responded that no NIH funds have been transferred and characterized the arrangement as routine interagency collaboration on biological threats. The dispute raises broader questions about congressional spending direction, interagency agreements, and how appropriated research funds may be used across agency boundaries. Read DeLauro's statement and Cole's response. See this month’s Express Explainer for more information about interagency agreements.
House shortens September legislative schedule
The House has canceled votes for the final two weeks of September. After returning on September 14, members are scheduled for only four legislative days before leaving Washington on September 17 and returning after the November elections. The abbreviated calendar sharply limits the window for additional House action this fall and shifts attention toward the post-election lame-duck session for unresolved legislation and oversight. Meanwhile, the Senate is scheduled to be in session from September 14 through October 2nd. The Senate has not completed a single FY2027 appropriations bill, so there is hope that they will spend the next few weeks negotiating those bills so that Congress can pass a complete FY2027 appropriations package by December 11 and avert a government shutdown.
Federal Agencies
NIH proposes changing how peer review outcomes are reported
NIH is seeking public comment on a proposal to replace the release of numerical overall impact scores and percentiles with three broad categories: "Most Competitive," "Competitive," and "Not Discussed." Reviewers would continue assigning numerical scores internally, but the final overall impact score would no longer be released to principal investigators, applicant institutions, NIH program staff, Institute and Center leadership, or advisory councils. NIH says the proposal is intended to align peer review reporting with its Unified Funding Strategy and reduce overreliance on numerical scores in funding decisions. Comments are due October 13, 2026. Read the NIH RFI.
DOJ Office of Legal Counsel Opinion on NSF STEM Education Programs
The Department of Justice Office of Legal Counsel concludes that the IUSE-HSI, AGEP, and LSAMP programs are unconstitutional in their current form because race-based eligibility criteria cannot be severed from the programs. OLC concludes that unconstitutional elements of ATE and ADVANCE can be severed, allowing those programs to continue without the race- or sex-based preferences, while TCUP, GRFP, AISL, and the Robert Noyce Teacher Scholarship Program may continue. The opinion has immediate implications for NSF program administration and future program design. Link.
Department of Education Proposed Revisions to EDGAR
The Department of Education has proposed revisions to the Education Department General Administrative Regulations (EDGAR), including technical updates related to the 2024 Uniform Guidance revisions. For SRAI members closely watching the White House OMB's proposed overhaul of government-wide grant rules, the EDGAR proposal is a timely reminder that agency-specific regulations form an additional layer of federal award administration. Comments are due September 23, 2026. Link.
NSF Forward Initiative
The American Physical Society, working with a broad group of scientific and professional society partners, has launched NSF Forward, an initiative to develop recommendations for strengthening the National Science Foundation over the long term. The initiative is seeking input from across the U.S. scientific enterprise, including researchers, educators, students, administrators, industry, and policy professionals, on how NSF programs, structures, and approaches could evolve. Community input will inform recommendations intended for consideration by the 120th Congress. Responses are due September 21, 2026. Link.
Relevant Articles & Resources
Higher Education Litigation Summary: August 2026
Thompson Coburn's monthly litigation tracker summarizes major federal court cases affecting higher education, including disputes involving federal grants, civil rights, institutional policy, student aid, and other federal actions. The August edition provides a concise way for research administrators to monitor litigation that may affect sponsored research and institutional compliance.
Nature: NSF Set to Issue Lowest Number of New Grants in Four Decades
Nature reports that NSF is on track to make substantially fewer new research grants in FY2026 than in recent years, potentially bringing the number of new awards to its lowest level in more than four decades. The article examines the funding and policy dynamics contributing to the decline and their implications for researchers and research-performing organizations.
Inside Higher Ed: AI Use in Federal Grant Applications
New research examining more than 125,000 NIH and NSF applications suggests that substantial use of generative AI in NIH proposals is associated with a higher probability of funding, while no similar association was found for NSF proposals. The analysis also raises questions about whether AI-assisted proposal development may encourage convergence toward previously funded ideas.
2025-2026 COGR Year in Review
The COGR Year in Review provides a succinct compilation of major federal research-policy developments and related resources from the past year. Topics include Uniform Guidance, indirect costs, research security, litigation, compliance, and agency-specific policy developments. For SRAI members looking for a quick reference, the document brings a substantial number of useful source materials together in one place.
NIH Unified Funding Strategy Webinar Recording and Related Resources
NIH has posted the recording and companion materials from its webinar on the Unified Funding Strategy. The resources explain how NIH is applying an agency-wide framework to funding decisions and include discussion of peer review, Institute and Center priorities, portfolio considerations, career stage, and interpretation of review outcomes. The companion page includes the webinar recording and additional resources for applicants and research administrators.
The Federal Pulse pilot has reached the one-year mark and will pause after this issue while SRAI evaluates the program.
#Pulse