NSF Funding Rumors: What You Need to Know

We’ve received a number of inquiries regarding circulating rumors about a potential pause in National Science Foundation (NSF) funding. First, thank you for reaching out and sharing your concerns. We understand how unsettling this kind of chatter can be, especially when it concerns vital research projects, proposal planning, and ongoing funding streams. It’s lent to a level of uncertainty for the research and innovation community, and if you’re holding a cup of coffee and a calendar full of grant deadlines, we see you.

Rumors have been swirling about a possible freeze on National Science Foundation (NSF) funding. Now, thanks to two new reports from Education Week and Inside Higher Ed, we have a clearer—though still frustratingly incomplete—picture of what’s going on. Here’s what you need to know.

TL;DR

NSF has paused new funding decisions and canceled 400+ STEM grants, according to Education Week and Inside Higher Ed. This is not just a rumor anymore. However, NSF has yet to issue an official public-facing announcement or detailed guidance (to our knowledge), which leaves institutions, grantees, and hopeful applicants in a bit of a holding pattern.

We recommend proceeding with planned submissions and project activities unless directed otherwise by NSF or your institution.

What Just Happened?

First, Education Week reported on May 5th that NSF staff had begun notifying researchers that over 400 STEM education research grants were being canceled, stating they were “no longer in alignment with agency priorities.” That’s a stunning number, and a deeply unsettling one for the STEM education community.

Then, Inside Higher Ed followed up with a detailed report noting that NSF is halting new funding decisions across several directorates and has also issued a cap on indirect cost rates for some programs. Institutions are scrambling to interpret what this means for ongoing and upcoming proposals, as no comprehensive public guidance has been provided.

The rumored stoppage appears to focus on removing preference for some groups at the expense of others, or directly/indirectly excluding individuals or groups, AND the agency also moved to cap indirect research rates at 15 percent.

What This Means (And What It Doesn’t… Yet)

Let’s get this straight: these reports are real, and they’re credible. However:

  • NSF has not issued a formal public statement or updated its website with comprehensive guidance for applicants, reviewers, or grantees.
  • The changes appear to be internal and targeted, not necessarily a blanket shutdown of NSF funding or a full suspension of all programs.
  • The funding freeze and indirect cost rate caps seem to be selectively impacting education and social science-related grants, though we’re watching closely to confirm whether this spreads to other directorates.

In other words: the fire is smoldering, but it’s not yet an inferno.

Our Guidance: Stay the Course (For Now)

Despite the shockwaves caused by this news, we strongly recommend continuing with all grant submissions, project activities, and proposal planning as scheduled unless NSF explicitly directs you otherwise, or your Sponsored Programs Office offers new internal guidance.

There’s no benefit in halting progress based on incomplete information. And with many NSF program deadlines fast approaching, the best course of action is to stay prepared and nimble.

We’re tracking all developments closely and will update our clients immediately when more definitive, agency-wide guidance is released. Your work matters, and we’re here to help make sure it moves forward.

If You’re a Current or Prospective NSF Applicant…

Here’s what you can do today:

  • Confirm with your Sponsored Research Office or Program Officer whether your submission is still moving forward
  • Proceed with internal timelines and proposal development—don’t delay
  • Keep your documentation tight: track correspondences and document approvals
  • Consider developing contingency plans, just in case redirection is needed

And of course, if you’re working with us, we’ll help you navigate this uncertainty strategically.

We’ll Say It Again: You’re Not Alone

These are the moments that test resolve, but they also highlight the value of working with funding experts who understand the system and can help you adapt. At E.B. Howard Consulting, we’re committed to staying ahead of the curve, translating chaos into clarity, and helping you focus on what matters: your work, your mission, and your impact.


Ready To Take the Next Step?

We assist our clients in locating, applying for, and evaluating the outcomes of non-dilutive grant funding. We believe non-dilutive funding is a crucial tool for mitigating investment risks, and we are dedicated to guiding our clients through the entire process—from identifying the most suitable opportunities to submitting and managing grant applications.