Dear Colleagues, 

Please find a federal government update from our teams.

Government Funding Update
Lawmakers departed Washington, DC yesterday for a weeklong recess without passing legislation to fund the U.S. Department of Homeland Security (DHS). DHS funding expires at midnight tonight. Senators voted down a stopgap bill 52-47 [3] that would temporarily extend DHS funding before leaving town. Approximately 96 percent of federal agencies are funded through Sept. 30, 2026, including the Departments of Commerce, Education, Energy, Health and Human Services, as well as the National Science Foundation, National Aeronautics and Space Administration, and more.  

Genesis Mission Updates
The U.S. Department of Energy (DOE) announced [4] on Feb. 9 the launch of the Genesis Mission Consortium [5], a public-private organization that will bring together technical capabilities and expertise from DOE, national laboratories, the private sector and academic institutions to solve national challenges. The consortium is organized by four working groups: AI model development and validation, data integration and standards, high-performance computing and cloud infrastructure and robotics and automation.

DOE also announced [6] 26 science and technology challenges to advance the Genesis Mission and accelerate innovation and discovery through AI on Feb. 12. Challenges span DOE’s discovery science, energy and national security missions. The list of challenges is available here [7]. The Gensis Mission is a national effort to double the pace and impact of American innovation within a decade using AI.

DOE Rescinds Indirect Cost Cap
The U.S. Department of Energy (DOE) announced [8] on Jan. 27 it had rescinded policies issued in 2025 that capped indirect cost reimbursements to universities. The directive makes DOE compliant with provisions in the Commerce, Justice, Science; Energy and Water Development; and Interior Environment Appropriations Act, 2026 (P.L 119-74), which instructs DOE to use fiscal year 2024 negotiated indirect cost rates. The 2025 policies are no longer in effect as of Jan. 23 when the appropriations bill was signed into law.

DOW Withdraws Appeal in Indirect Cost Case
The Department of War (DOW) filed a motion to dismiss [9] its appeal in court cases challenging the agency's policy capping indirect cost reimbursements to universities at 15 percent on Feb. 10. The dismissal means current negotiated indirect cost rates will remain in effect for DOW grants. The lawsuit [10] filed by national organizations such as the Association of Public and Land-Grant Universities (APLU) and the Association of American Universities (AAU) included a declaration of impact [11] by CU Boulder at the request of the associations.

CDC to Cancel Grants in Democratic-led States
The federal administration rescinded [12] about $600 million in Centers for Disease Control and Prevention (CDC) public health grants allocated to four Democratic-led states – including Colorado, California, Illinois, and Minnesota— because the funds “do not reflect agency priorities.” The grants supported a wide range of public health work, including hiring staff, modernizing data systems, and implementing disease prevention programs such as HIV and STI surveillance. Colorado joined [13] the other affected states in filing a lawsuit in a federal court in Illinois, where a judge issued a 14-day temporary restraining order delaying the implementation of grant terminations on Feb 12. CU’s Offices of General Counsel and Federal Relations are working with the campuses to address any impacted grants across the system.

White House Withholds NASA Science Funds
The White House directed [14] the National Aeronautics and Space Administration (NASA) to “pause” funding for science missions proposed for cancellation in its 2026 budget request but preserved in the funding bill enacted by Congress last month, reports [15] Politico. NASA said the pause is expected to last 10 days but may be extended. The White House sought to terminate nearly 20 active science missions in fiscal year 2026, reports [16] The Planetary Society.

National Lab of the Rockies Announces Layoffs
The U.S. Department of Energy (DOE) laid off 134 employees on Feb. 9 at the National Lab of the Rockies (NLR), formerly called the National Renewable Energy Laboratory, in Golden, CO, reports [17] The Colorado Sun. Layoffs were implemented to adjust to current and projected funding levels as well as DOE priorities, reports [18] CPR News. DOE previously eliminated 114 staff and contracting positions at NLR last May. NLR and CU Boulder have a joint research institute called the Renewable And Sustainable Energy Institute (RASEI).

DOW To End Graduate Education Programs at Harvard
Secretary of War Hegseth announced [19] on social media on Feb. 6 that the Department of War (DOW) will “discontinue graduate-level professional military education, fellowships and certificate programs” at Harvard beginning in the 2026-2027 school year.

Secretary Hegseth said all existing graduate programs for active-duty service members at Ivy League schools and other civilian universities will also be evaluated to determine if they provide cost effective strategic education for service members compared to programs run by public universities and military graduate programs.

Secretary Hegseth’s announcement follows the President’s announcement [20] from Feb. 2 that the government is seeking a $1 billion settlement from Harvard over the university’s failure to address alleged campus antisemitism.

The Federal Relations and General Counsel teams are actively monitoring developments at the federal level. We are working closely with the President and Chancellors, as well as the Colorado congressional delegation to champion CU priorities. We are committed to keeping you informed. Please visit the CU System Federal Updates and Actions page [21] for up-to-date communications and federal memos. 

Danielle Radovich Piper, Sr. VP External Relations and Strategy
Kerry Tipper, Vice President, University Counsel