The federal government shut down as lawmakers failed to reach an agreement on how to extend federal funding through the new fiscal year. The shutdown happened at midnight Oct. 1.
Congressional Democrats and Republicans were unable to agree on the inclusion of healthcare subsidies within the annual appropriations bill. Federal government agencies and programs were reduced to the extent permitted by law, with long-term consequences for federally funded research and student financial aid.
During a shutdown, federal government agencies furlough non-essential staff and cease all non-essential activity — including the administration of federal grants, funds and contracts — until Congress allocates funds with its annual appropriations bill or a temporary continuing resolution. This extends to research funding from any federal agency including the Department of Education grants and the Free Application for Federal Student Aid (FAFSA) program.
In response to the shutdown, the UC Office of the President (UCOP) published a notice outlining the effects that the shutdown will have on UC students, researchers and healthcare. It states that “the short-term impacts on UC are expected to be limited,” as federal student aid for the 2025-26 school year has already been allocated.
Most researchers will still be able to continue with awarded funds they’ve received previously, and core healthcare systems like Medicare and Medicaid are not subject to annual appropriations.
However, the notice highlights long-term uncertainty for research. For the duration of the shutdown, new research awards cannot be approved, existing ones may not be extended and federal agencies are unable to answer any inquiries about funding.
The UC Office of Research Policy Analysis and Coordination and the UC Office of Federal Governmental Relations recommend that researchers take action depending on each agency’s contingency plan. Although many agencies, including the Department of Education, planned to furlough over 90% of their staff.
According to UCOP, the federal government funded more than four billion dollars of UC research in the 2024 fiscal year, of which $362 million was allocated to UCI. Although campus administrators anticipate minimal short-term disruptions to campus operations and expect no impact on academics, researchers will face delays in securing federal funding. Payments to postdoctoral and graduate students may be delayed “in some cases.”
The shutdown is the latest complication with UC funding since the beginning of the Trump administration in January. During the final weeks of the spring 2025 quarter, an on-campus demonstration protested against huge funding cuts and layoffs for the UCI School of Humanities after an 8% reduction in state funding for the UC system was reduced to 3%.
In August, the Justice Department declined to defend grants for Hispanic-serving colleges, declaring them unconstitutional, and froze $584 million in research funding for UCLA, however this was overturned, according to CalMatters. The UC is currently defending its federal funding sources by campaigning against budget cuts to the National Science Foundation and the National Institutes of Health.
Any prospect of a swift end to the federal shutdown was quashed as Senate Democrats held firm in their opposition to a Republican bill to reopen the government on Oct 3.
President Donald Trump met with Budget Director Russell Vought, saying the two would determine “which of many Democrat agencies” would be cut on Oct. 2. As both sides continue to be at odds on the appropriations bill and blame each other for closing the federal government, an extended shutdown is a real possibility.
A previous record breaking 35-day government shutdown in 2018 resulted in unpaid researchers, delays in research publications and cancelled events, heavily impacting research across the country.
Hugo Lai is a News Intern for the fall 2025 quarter. He can be reached at hlai7@uci.edu.
Kian Momeny is a News Staff Writer. He can be reached at kmomeny@uci.edu.
Edited by Annabelle Aguirre, Jeralynn Querubin
