Monitoring Federal Changes 2025

View all research updates at www.research.uky.edu/federal-changes-2025.

1. Feb. 21: Federal Judge Extends Pause on Cuts to NIH Indirect Costs

A federal judge has kept in place an order blocking the administration from implementing a cap on how much indirect costs the National Institutes of Health pays grant recipients. The temporary restraining order was set to expire on Monday, Feb. 24, and has been extended until U.S. District Judge Angel Kelley can make a final decision on whether to issue an injunction on the proposed change. Read more on nytimes.com. UK community members have free access to digital versions of the New York Times and Wall Street Journal by subscribing through UK Libraries.

2. Feb. 11: Judge Blocks Cuts to NIH Indirect Costs 

A federal judge in Boston ordered a nationwide temporary pause on plans by the National Institutes of Health to substantially slash indirect cost reimbursements for research to universities, medical centers and other grant recipients. Read more on nytimes.com. UK community members have free access to digital versions of the New York Times and Wall Street Journal by subscribing through UK Libraries.

3. NIH Notice on Indirect Cost Rates: Effective Feb. 10 

•  The National Institutes of Health (NIH) issued guidance on Feb. 7 regarding cuts to federal research grants. Specifically, the NIH announced it would cap the rate for what are known as “indirect costs” to 15% for all existing and new NIH contract awards. On Feb. 10, litigation was filed by multiple states challenging this decision.
• If this policy change is enacted, it will impact the way we do research at the University of Kentucky. It will cost UK tens of millions of dollars annually and will hit our local and state economies. More important than any numbers, though, it will impact the work we do to advance the health of Kentucky in those areas most critical to our future — including cancer, heart disease, Alzheimer’s and addiction.

What does this specific policy directive from the NIH mean?

• The NIH is the largest funder of health research in America. In the past five years the University of Kentucky — as a major health research and clinical institution — received an annual average of $159 million in NIH awards (grants and contracts).
• Those awards fund basic science research into the diseases and illnesses that most impact Kentucky: cancer, diabetes, heart disease, children’s health, aging-related illness, opioid use disorder and many others.
• Awards have two major components. There are direct costs — dollars directly associated with the scientific research in question.
• And there are indirect costs — what are often called Facilities and Administration or F&A. Those are dollars associated with the award to pay for items that make that research possible. That could be the construction and outfitting of a lab, research equipment, utilities such as ventilation, heat and lighting, associated technology and graduate students who work in the lab setting.
• That indirect cost or rate is negotiated for a period of time between an institution — like UK — and the NIH. Those rates range from 20% of the cost of a grant to 54%, depending upon the research being conducted and the terms of the award.
• For example, a $1 million grant with a 37% indirect rate would mean that $1 million directly funds research; $370,000 ultimately goes to the university to allocate to pay those support costs, like facilities, equipment, technology and personnel. The structure for how those dollars can be used is very prescribed.
• Cutting the rate to 15% — what the NIH has described as a benchmark for what private foundations that award grants provide — would cut tens of millions of dollars in essential support services to scientists and clinicians who are asking the most important questions about the biggest health challenges Kentucky faces. This one change, if enacted for the next 12 months, would represent a cut of at least $40 million to the University and its critical research efforts on behalf of the health of our state.  
• Too, the comparison between a private foundation providing a grant around research in education policy, for example, simply does not involve the same cost or cost structure as a basic science grant that could include building and lab space and all the supports that go along with that infrastructure. The complicated discovery and research our investigators perform cost more than the research often funded by private foundations.

How the university is responding:

• Our government relations team is meeting with our congressional delegation and others to communicate how fundamentally important and serious this issue is to our community and all those we serve through discovery and healing.
• Our cabinet, deans and other leaders are meeting regularly to confer on this and other issues to ensure we remain careful and prudent stewards of our resources — that we are moving thoughtfully to protect what we do and the future of our research enterprise.
• We will comply with all federal and state laws and policies. That is our responsibility. At the same time, we will forcefully advocate
  for what we do and our vital mission to advance this state. This includes advocating for the restoration of these critical research dollars.
• We will continue to keep you informed of important updates.

4. Rescission of OMB Federal Aid Pause: Effective Jan. 29

• The Office of Management and Budget (OMB) rescinded its pause on federal agency grant, loan and other financial assistance programs on Jan. 29.
• As of Jan. 29, unless you have received a notice to suspend activities for a specific award from a sponsor, you can continue your research activities.

The Jan. 27 funding pause issued by President Trump’s Office of Management and Budget has been rescinded. Even if it went into effect, the U.S. Department of Education clarified it would not have impacted federal student loans and Pell grants. 

Executive Actions: 

“Protecting the United States from Foreign Terrorists and Other National Security and Public Safety Threats” Executive Order: Issued Jan. 20 

• This order requires “enhanced vetting” and screening of individuals both seeking admission to and already in the U.S. The order further requires the evaluation of all visa programs to “ensure that they are not used by foreign nation-states or other hostile actors to harm the security, economic, political, cultural, or other national interests of the United States.” 
• As of today, no travel restrictions (bans) are in effect. While the order requires the Secretaries of State and Homeland Security, with the Attorney General and Director of National Intelligence, to produce a report identifying countries with insufficient vetting and security processes to warrant suspending admission of these nationals to the U.S., there are no public details on what countries will be affected by the report.

Current guidance on visas and maintaining lawful status: 

• Students (F-1 and J-1 visas)
• Faculty, staff and researchers (J-1 and H1-B visas and Green Card holders) 

Executive Actions: 

“Securing our Borders” Executive Order: Issued Jan. 20 

• This order includes several provisions, including “deterring and preventing the unlawful entry of aliens into the country, detaining and removing aliens in violation of immigration law, and partnering with state and local law enforcement to enforce federal immigration law.”  

"Protecting the American People Against Invasion” Executive Order: Issued Jan. 20 

• This order allows the Secretary of Homeland Security to deputize state and local law enforcement officials to serve as immigration officers and permits the Secretary of the Treasury to facilitate all visa bonds permitted under law. 
• The order directs the review of Temporary Protected Status designations made by the Biden administration and directs the Secretary of State, Attorney General and Secretary of Homeland Security to ensure that employment authorizations are provided in a manner consistent with federal law. 
• Under the order, “sanctuary jurisdictions” are not permitted to receive federal funds. 

Recission of Biden Administration “Protected Areas” Immigration Enforcement Policy: Issued Jan. 21 

• Acting Department of Homeland Security Secretary Benjamine Huffman rescinded the Biden Administration’s policy memo on immigration enforcement actions in or near protected areas. 
• The rescission of the 2021 policy memo means that there are no longer any specific protected areas such as schools, hospitals or churches under current policy. 

Responding to Federal Law Enforcement:  

The university is not aware of any requests or actions from U.S. Immigration and Customs Enforcement (ICE) or other federal law enforcement agencies at this time.

The following information is general guidance on how to appropriately respond to federal law enforcement officers if you were to encounter them on UK property, or if you were to receive a request for information. 

University faculty, staff and students:

1. Notify university authorities:
   1. If you encounter federal law enforcement on campus or receive a request for information, contact UKPD (859-257-8573) and the Office of Legal Counsel (UKOfficeofLegalCounsel@uky.edu, 859-257-2936) to inform them of the situation. 
2. Document the situation:
   1. Document the date, time and details of the interaction. 
3. Do not interfere with law enforcement:
   1. While you have the right to document and report the interaction, do not physically obstruct or interfere with agents. 

UK HealthCare employees:

1. If you encounter federal law enforcement within UK HealthCare facilities or receive a request for information, contact your supervisor or unit administrator.
2. Follow existing protocols on unanticipated visits from law enforcement.

Federal Privacy Protections:

Students

• UK complies with the Family Educational Rights and Privacy Act (FERPA). Under FERPA, all university students, regardless of immigration status, are entitled to certain privacy protections.
• It is important to forward any request for student information to the Office of Legal Counsel before any action is taken. Generally, student records maintained by the institution cannot be disclosed without written consent or a lawfully issued subpoena, judicial warrant or court order.
• We will continue to adhere to these requirements.
• Additionally, the university does not track citizenship status beyond the required visa information forinternational students, scholars and employees. 

Patients

• UK HealthCare complies with the Health Insurance Portability and Accountability Act (HIPAA), which protects the privacy of an individual’s health information.
• While immigration status alone is not typically considered personal health information, it could       be under certain circumstances and should not be disclosed unless the patient consents. Any questions should be referred to the Chief Privacy Officer or the Office of Corporate Compliance.
• Additionally, health care providers do not inquire into a patient’s immigration status or report it to authorities.

Executive Actions: 

Feb. 21:Judge Temporarily Blocks Trump’s Anti-DEI Orders

• A federal judge on Friday issued a preliminary injunction temporarily blocking much of the Trump administration’s sweeping effort to stamp out diversity, equity, and inclusion programs and policies nationwide.

Feb. 14: U.S. Department of Education Office of Civil Rights “Dear Colleague” Letter: Issued Feb. 14

• The U.S. Department of Education sent a Dear Colleague Letter to educational institutions receiving federal funds notifying them that they must not use race preferences and stereotypes as a factor in their admissions, hiring, promotion, compensation, scholarships, prizes, administrative support, sanctions, discipline and beyond.
• Institutions that fail to comply may, consistent with applicable law, face investigation and loss of federal funding. The Department will begin assessing compliance beginning no later than 14 days from issuance of the letter.
• As with any guidance, we are carefully reviewing. However, given the changes that President Capilouto made in response to Students for Fair Admissions v. Harvard – and his subsequent decisions on policies and practices that have reinforced and strengthened our focus on being a place that supports many people, one community – the university’s initial assessment is that it already complies with this guidance.

Jan. 21: “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” Executive Order: Issued Jan. 21 

• Under this order, the Department of Labor Office of Federal Contract Compliance Programs will cease “allowing or encouraging federal contractors and subcontractors to engage in workforce balancing based on race, color, sex, sexual preference, religion, or national origin.” The head of “each agency” shall include in every contract or grant award a term requiring the contractual counterparty or grant recipient to agree that its compliance in all respects with all applicable Federal anti-discrimination laws is material to the government’s payment decisions for purposes of section 3729(b)(4) of title 31, United States Code; and a term requiring such counterparty or recipient to certify that it does not operate any programs promoting DEI that violate any applicable Federal anti-discrimination laws.
• Further, “each agency shall identify up to nine potential civil compliance investigations of publicly traded corporations, large non-profit corporations or associations, foundations with assets of 500 million dollars or more, State and local bar and medical associations, and institutions of higher education with endowments over 1 billion dollars.”
• Additionally, “within 120 days of this order, the Attorney General and the Secretary of Education shall jointly issue guidance to all State and local educational agencies that receive Federal funds, as well as all institutions of higher education that receive Federal grants or participate in the Federal student loan assistance program under Title IV of the Higher Education Act, 20 U.S.C. 1070 et seq., regarding the measures and practices required to comply with Students for Fair Admissions, Inc. v. President and Fellows of Harvard College, 600 U.S. 181 (2023).”  

Jan. 20: “Defending Women from Gender Ideology Extremism and Restoring Biological Truth To The Federal Government” Executive Order: Issued Jan. 20 

• This order defines sex strictly as male or female, directing agencies and federal employees to enforce sex-protective laws without recognizing other gender identities. It requires the Secretaries of State, DHS and OPM to update identification documents, such as passports and visas, to align with this definition.
• The order also prohibits federal funding for promoting gender ideology, leaving agencies discretion to assess grants.
• While it mandates changes to Bureau of Prisons medical care policies, it does not address private or academic healthcare. 

Jan. 5: “Keeping Men Out of Women’s Sports” Executive Order: Issued Jan. 5

• This order directs the Secretary of Education to enforce Title IX “to oppose male competitive participation in women’s sports” and calls for collaboration with athletic organizations and state officials to uphold sex-based sports classifications. The order also directs all executive departments and agencies to rescind grant funding for institutions that fail to comply.
• The university has always complied with Title IX. The university will continue to comply with federal law and NCAA rules.