Federal Government Shutdown Guidance
Federal Government Shutdown Guidance
Update: Unfortunately, Congress has failed to pass a continuing resolution to extend FY25 Federal Government funding beyond September 30th. As a result, a federal government shutdown is now in effect.
The Research Foundation of CUNY (RFCUNY) has learned from its previous experience with the 2018 partial federal government shutdown and has developed guidelines and procedures to prepare for another lapse in federal funding. We are closely monitoring changes specific to a potential federal government shutdown and will keep the RFCUNY and CUNY community informed of any new developments. The purpose of this page is to provide a dedicated space for updates and to provide guidance to help our community members navigate the next steps.
Below we outline the steps that will guide our emergency fiscal response for all projects directly funded by Federal agencies and the actions expected from CUNY PIs, campuses, and units.
I.RFCUNY Contingency Plan: Three-Tier Fiscal Defense
Step 1: Conserve Cash
- Payroll Protection: Suspend any new hires on federal projects while continuing to process existing payroll. Review program-by-program funding availability daily and weekly. We will work with the campuses and units to secure campus guarantees to cover payroll in the event RFCUNY does not get reimbursed by the Federal Government.
- Immediate OTPS Freeze: Suspend all OTPS spending except for Essential / Emergency (defined below) in federally sponsored programs directly impacted by the shutdown until the federal government reopens.
- RFCUNY Forward Funding and College Guarantee requests for all new projects, including New York State, New York City, and private awards, will be suspended.
- Discretionary Funds: We ask the colleges to take steps to conserve their discretionary funds on deposit at RFCUNY.
Step 2: Campus Guarantee
- Each campus/unit will be expected to guarantee at least one month of payroll (two pay periods) from internal sources if federal funds are delayed or do not materialize.
- If the shutdown extends beyond 30 days, this guarantee may need to be extended proportionally.
Step 3: Line of Credit
- RFCUNY may draw on its line of credit if necessary to meet critical and necessary expenses.
- Any use of a bank line of credit must be repaid; therefore, we will limit this option only to cover critical expenses or emergencies.
II. Managing and Prioritizing Personnel and OTPS Spending
A. Personnel and Payroll of Federally Funded Employees
- No new employees will be placed on RFCUNY’s payroll.
- Payment of personnel costs will be limited to existing employees, as funding permits.
- Reappointments may be processed on a case-by-case basis.
B. Other than Personnel Spending (OTPS) on Federally Funded Projects
Effective immediately, OTPS expenditures will be classified as follows:
1. Essential / Emergency (Allowed)
- Health and safety needs (lab safety, animal care, hazardous waste removal).
- Compliance-related obligations (IRB-required expenses, audit/legal requirements).
- Expenses necessary to prevent the permanent loss of research data, specimens, or project continuity.
2. Nonessential OTPS Spending (Suspended until further notice) This includes, but is not limited to:
- Travel and conferences
- Professional development
- Non-urgent equipment purchases or supply replenishment
- Routine consulting or service contracts not tied to compliance or safety
- New discretionary initiatives
- Non-essential upgrades or improvements
- Expenses unrelated to ongoing research continuity
III. Defining “Emergency Spending”
Emergency spending is narrowly defined as costs that:
- Protect health and safety (lab safety, animal care, hazardous waste removal).
- Ensure compliance-related obligations (IRB-required expenses, audit/legal requirements).
- Prevent the permanent loss of research data, specimens, or project continuity.
- Ensure continuity of payroll for employees actively working on federally funded projects.
All other categories of spending should be delayed until federal appropriations are restored.
Please consult with our Frequently Asked Questions (FAQs) regarding the federal government shutdown.
If you have any questions that are not addressed in our FAQs, please contact us using RFCUNY’s Federal Government Shutdown form.
Please review the letter from Chancellor Félix V. Matos Rodríguez, Ph.D. on the Federal Government Shutdown
Current Alerts:
2025, Alert #2: Memorandum for Federal Government Shutdown
Previous Alerts:
These are alerts RFCUNY has issued in the past.
Links for Additional Resources to Watch:
Guidance from COGR: Considerations for a Federal Government Shutdown
Agency Contingency Plans collected by the Federal News Network