Time to double down: Federal Grants may be affected if the US gov’t shuts down

Talks of a government shutdown are concerning at best, but emotionally, they can invoke a form of panic, especially for experienced grant writers.

A government shutdown, by default, can affect the ecosystem that funnels resources through procurement, funding, and allocations.

During a federal grant application cycle, October (the start of Q4) becomes critical for organizations because this is the season when awarded funds are released and funded programs can begin, as well as the time of the year for fixed deadlines for research grants (i.e., NIH).

According to federal grants, it is advised for organizations to submit their federal grant applications early, but no later than September 28, 2023, at 11:59 p.m. (or whatever your application deadline is). Thus, if Congress does not pass new spending legislation before that, effective October 1st, a “shutdown” will occur, with agencies suspending most operations. In that case, federal agencies are likely to delay or suspend grant application deadlines and application review processes.

Existing Grantees and the Federal Government Shutdown

Don't fret!! The good news is this: If Congress cannot come up with an agreed-upon budget by October 1st, if you are an existing grantee, the federal shutdown will not affect you because funds distributed to existing grantees should continue as planned, in that any existing funds that were obligated to the grantee will still become available and will be distributed as planned for the current year.

New Grant Applicants and the Federal Government Shutdown

Unfortunately, new federal grant applicants and new grant proposals will have the most impact if the federal government shuts down. For grant proposals submitted before October 1, 2023, the review process will be delayed. However, according to the UofU OSP, if there are proposals that have due dates after October 1st, it is advised not to send in a new proposal until the shutdown is resolved due to the limited number of staff available to process any new queries.

It is imperative to find a prompt solution to prevent multiple institutions from being affected and to guarantee that current grant beneficiaries do not face any funding cuts or delays. It's vital for individuals who have received or intend to apply for a grant to be thoroughly informed about the consequences of the government shutdown. Being aware of the situation will enable them to steer clear of any unforeseen complications, irrespective of where they are in the grant application process.

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