Alec Simantov
Alec is a Director in the McAllister & Quinn Research Universities Practice. Alec leverages his expertise on the federal budget and Congress to provide strategic intelligence and oversight on legislative and policy developments, focusing on R&D, science, and higher education policy.
In Fiscal Year 2025 (FY25) we saw rapid shifts across the federal funding landscape with the Trump administration moving to reshape federal research funding priorities in science agencies. Congress is navigating its annual appropriations process and struggling to balance priorities amid a charged atmosphere after the passage of the One Big Beautiful Bill reconciliation package earlier this year. Litigation continues in the federal courts over disputes about grant delays and cancelations, funding rescissions, and government downsizing.
Science Research Federal Funding Outlook
While Congressional appropriators largely rejected the President’s proposed topline cuts to science agencies like DOE, NASA, NIH, NIST, NOAA, and NSF on a bipartisan basis, the process has been affected by larger political disputes. As of September 12, both the House and Senate have only passed 3 of their respective 12 appropriations bills needed to fund the federal government for fiscal year 2026 (FY26). With less than 2 weeks until the start of FY26 on October 1, Congress will once again need to pass a continuing resolution (CR) as a stopgap measure to prevent a government shutdown. This would leave federal research funding flat at FY25 levels while Congress negotiates a final funding package.
While this is par for the course at the end of the fiscal year, the passage of H.R. 1 (The One Big Beautiful Bill) and H.R. 4 (the first rescissions package requested by the White House) has disrupted relations in Congress. Republicans in the House are preparing to release the text of their proposal which is expected to push the appropriations deadline to November 20. However, Democrats have united around including an extension of healthcare insurance subsidies in exchange for supporting any stopgap bill and appear increasingly ready to reject any proposal that is not bipartisan. Any continuing resolution will need Democratic support in the Senate in order to pass the 60-vote threshold.
Federal Research and Development Funding Faces Challenges
The situation in Congress remains fluid and negotiations will continue. A short-term CR of some kind through November or December remains the most feasible option, at least for now. However, the political dynamics of this cycle increase the chances R&D funding is caught up in larger partisan funding battles. If Congress is able to agree to a short-term stopgap solution and avoid a shutdown in October, further funding negotiations will continue under the threat of additional White House rescission requests, increasing the chances of shutdown later in the year.
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