2025 Federal Transition and Policy Updates
U.S. Department of Energy (DOE)
Updated April 14, 2025
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Updates
Apr. 11, 2025, the DOE announced a new policy applicable only to institutions of higher education, stating:
- Indirect costs of all grants will be capped at 15%. Additionally, they will seek to undertake action to terminate all grant awards to institutes of higher education that do not confirm with this updated policy.
Jan. 27, 2025, the DOE issued a Memorandum for All DOE Funding Agreements or Awards, stating:
- Recipients and subrecipients must immediately halt any activities related to (including contracted activities) and stop incurring costs associated with related to diversity, equity, and inclusion (DEI) and Community Benefits Plans (CBP) across all DOE grants, cooperative agreements, or any type of DOE funding.
Jan. 20, 2025, Memorandum for Heads of Departmental Elements (internal to the DOE): The Department of Energy is conducting an agency-wide review of program and administrative activities. The memo states:
- Until further notice, all funding and related activities—including grants, cooperative agreements, and contracts—must be reviewed and approved internally by the DOE before they can be announced, approved, finalized, modified, or provided.
Guidance for faculty:
- If your grant has been impacted by the new indirect cost rate cap, please contact Anthony Beckman, interim associate vice president and director of research and project administration, in the Office of Research and Project Administration.
- Work on existing awards may continue if obligated funds are available and the DOE has not issued a stop-work order.
- Notices of new, continuing, or supplemental funding will be delayed, and awards currently under negotiation are on hold until further notice.
- DOE-funded projects that include diversity, equity, inclusion, and accessibility (DEIA) activities must immediately cease those specific activities.