Update on Recent Executive Order Impacting Federal Contracts and Grants

February 27, 2025

Dear Members of the Carnegie Mellon University Research Community,

We write to inform you of a recent development related to the university’s engagement with federal funding sources. Last night, President Trump issued a new Executive Order that directs federal agencies to take specific actions over the next 30 days.

Under this order, agencies are required to establish systems to identify and justify every payment they make. Additionally, they will review all “covered” contracts and grants, prioritizing those involving educational institutions. As part of this review, agencies may terminate or modify agreements to reduce or reallocate overall spending, depending on their assessment. Furthermore, agencies will assess their contracting policies and procedures, and no new contracting officer warrants will be issued until these reviews are completed and approved.

The Executive Order defines “covered contracts” as discretionary spending through federal contracts, grants, loans and related instruments. It explicitly excludes direct assistance to individuals, expenditures related to immigration enforcement, law enforcement, the military, public safety and the intelligence community, as well as other critical, acute or emergency spending as determined by the relevant agency head.

There is still much to learn about how each agency will respond and what the specific implications might be for our university community. We are actively working with the Association of American Universities (AAU), our peer institutions and officials in Washington, D.C., to better understand the potential impact.

We are committed to keeping you informed as more details become available. In the meantime, we encourage faculty and staff engaged in federally funded research or activities to remain attentive to any communications from funding agencies or administrative offices. We will continue to share regular updates on our website, and we encourage you to leverage the funding-questions email for your questions and to send us stories that underscore our research impact.

Thank you for your continued dedication and adaptability in navigating these evolving circumstances.

Sincerely,

James H. Garrett Jr.
Provost and Chief Academic Officer

Theresa Mayer
Vice President for Research