Federal Research Grant Slowdown—Implications and Actions for UC Davis Faculty

U.S. universities are facing a significant slowdown in federal research funding, particularly from the NIH and NSF, beginning in FY2025 and continuing into FY2026. Competitive grant awards have dropped sharply—NIH awards, for example, are down by more than 50% year-over-year in early FY2026. Even where congressional appropriations remain stable or increased, delays in releasing funds and disruptions in the grantmaking process are constraining the research pipeline.

The slowdown is not solely a budget issue; it reflects a convergence of operational and policy disruptions. Key drivers include delayed or canceled peer-review panels, postponed advisory council meetings, and backlogs in proposal processing. Federal agencies are also experiencing reduced staffing capacity due to workforce departures, limiting their ability to manage awards. At the same time, increased political and policy scrutiny has led to grant terminations, withheld funding, and shifting program priorities. These factors have collectively reduced both the volume and predictability of awards, even when funds are nominally available.

Actions Researchers Can Take

While individual actions cannot fully counter systemic funding instability, several strategies can mitigate risk:

Diversify Funding Sources: Proactively pursue non-federal funding (foundations, industry, state programs, philanthropy) to reduce reliance on NIH/NSF cycles.
Be Strategic in Submissions: Focus on high-fit opportunities aligned with current agency priorities. Prioritize proposal quality over volume, using internal peer review to strengthen competitiveness.
Strengthen Collaboration: Multi-PI and cross-institutional proposals can distribute risk and align with funders’ interest in scalable, interdisciplinary impact.
Plan Financial Contingencies: Explore opportunities for bridge funding in your department or college/school, adjust spending, and manage hiring timelines. Transparent communication with trainees, staff, and grant collaborators/subrecipients is essential.
Emphasize Impact and Translation: Clearly articulate societal relevance, workforce development, and translational pathways to improve success across funding sources.
Engage in Advocacy and Service: Participation in review panels, professional societies, and policy engagement can improve visibility and support broader efforts to stabilize funding.

For more information, read Federal Science Grant Delays in 2026: What Researcher Must Know and Do.