Sequestration 2013

On March 1, 2013 the federal government implemented across-the-board spending cuts of $85 billion for FY13, about evenly divided between defense and non-defense funding. The agencies are working through the details of implementing the cuts. Agencies have significant discretion on how to implement the 5% cut for non-defense and the 7.3% cut for defense.

For example, within many agencies the percentage amount reduction at award level may differ significantly. The impact on individual research projects will be dependent on the individual agency’s implementation strategy.

Because the exact manner of the implementation of automatic federal spending cuts has not been announced by the Obama administration and government agencies, ASU cannot yet estimate the reduction in areas such as federal research expenditures or financial aid.

Despite the financial uncertainty that the sequester presents, ASU will continue to advance its mission as the model for the New American University to pursue research and related endeavors that benefit the public good.

Preliminary announcements have been made by some agencies but none contain any actionable information at this time.

Details are as follows:

NIH: National Institutes of Health

  • There will be approximately 700 fewer competitive research project grants issued in FY2013
  • Reductions to non-competing research project grants vary depending on the circumstances of the particular institute and center. The NIH-wide average is -4.7%

NSF: National Science Foundation

  • All continuing grant increments in FY13 will be awarded and there will be no impact on existing NSF standard grants
  • Major impact will be a reduction in number of new research grants and cooperative agreements awarded in FY13
  • Intends to fund annual increments for cooperative agreements as scheduled, but funding constraints may require reductions to major investments

DOD: Department of Defense

  • Some units are advising grantees that timely expenditures are even more essential for retaining current and future funding
  • Current awards run the risk of termination if expenditures are not in line with original scope of work
  • Have indicated that specific programs will be identified for reduction in funding or potential cancellation

DOE: Department of Energy

  • Grant and Contract Officers will communicate directly with grantee with additional details
  • May not receive option funding or may need to negotiate lower prices via a bilateral modification
  • DOE may determine it’s necessary to stop or suspend work, reduce the scope of work or partially or completely terminate contracts for convenience
  • Planned contract actions for new work may be re-scoped, delayed or cancelled depending on the nature of work and the degree to which it directly supports the agency’s mission
  • May not issue continuation awards, including incremental funding on multi-year awards

DOJ: Department of Justice

  • DOJ budget reduced by $1.67 billion and OJP by $110 million
  • Sequestration will not reduce grantee funds received in previous fiscal years
  • The ability of OJP staff to travel and participate in meetings and events will be significantly reduced
  • OJP encourages grantees to consider video conferencing, webinars, and other technologies when feasible in lieu of travel

NASA: National Aeronautics and Space Administration

  • May not issue continuation awards, including incremental funding on multi-year awards
  • May require negotiation of a reduced scope of work
  • Grants and Contract Officers will communicate directly with grantee with additional details
  • Travel restrictions will apply to NASA contracts, but not grants and cooperative agreements

USDA: U.S. Department of Agriculture

  • Funding for the Agricultural Research Service (ARS) is reduced by approximately $55 million
  • Cooperative research agreements will be subject to some level of reduction
  • An ARS official will contact the university regarding incremental funding for FY13

ASU will monitor communications from the federal agencies regarding implementation plans. We will also continue to advocate for the research enterprise in Washington through the President’s Office and the Office of Knowledge Enterprise Development. Any updates will be posted on this page.

Please keep executing your project as proposed to meet your timeline and deliverables and continue your normal communications with your program officers.

If you are an investigator with questions, please contact your departmental research administrator.

If you are a member of the media, please contact ASU’s Media Relations Office at (480) 965-3502.