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Federal Policy Updates – Oct. 1, 2025

A regular digest for UW faculty with updates on federal and national issues of relevance to their teaching, research and service; actions the University is taking; and ways for faculty to be involved.

Federal government shutdown

With the U.S. Congress at a funding impasse and the federal government shutdown in effect, UW leadership is actively monitoring the situation and working to prepare for a variety of scenarios. At present, we anticipate that most UW operations will be able to function largely without disruption through the first two weeks of October. If the shutdown persists beyond that time period, we will have to reevaluate university operations.

The Office of Research has provided guidance and possible impacts to researchers and research award administrators who are directly affected by the shutdown. UW Finance, Planning and Budgeting, as well as the UW Federal Relations team, are keeping leadership apprised of developments. Check the UW Federal Relations blog for updates on federal government actions and developments.

Research resilience

A faculty committee on Research Resilience & Transformation has been formed to provide near- and long-term consultative strategic guidance to the president and provost on critical issues affecting our research enterprise. This committee will build on conversations that occurred with faculty committees over the summer at the school, college, and campus levels.

International

H1B visas

International Scholars Operations in the Office for Academic Personnel & Faculty is monitoring news and relevant professional networks for clarification regarding the new $100,000 H-1B visa fee announced on Sept. 19.

The recently proposed changes to the H-1B cap lottery would not affect the UW. As an institution of higher education, the UW is categorically cap-exempt and does not participate in the cap lottery.

F-1 and J-1 students

Almost all F-1 and J-1 students have arrived in the U.S. to begin autumn quarter classes. International Student Services (ISS) staff continue to work with a small number of new students who are still experiencing visa delays.

The UW has submitted a comment on the proposed rule to end “duration of status” for F-1 and J-1 students and exchange visitors.

Guidelines and Requirements

Public Service Loan Forgiveness

The U.S. Department of Education has proposed new rules that could be used to limit which employers qualify for Public Service Loan Forgiveness for employees’ student loans. Prompted by Executive Order 14235, the proposal would let the Secretary of Education disqualify government or nonprofit employers deemed to have a “substantial illegal purpose”— such as aiding immigration violations, supporting terrorism, or engaging in patterns of discrimination—using a low “preponderance of evidence” standard and without a clear appeals process. If adopted, payments made after an employer is ruled ineligible would no longer count toward loan forgiveness.

Federal indirect costs changes

The Association of American Universities, the American Council on Education, and the Association of Public and Land-grant Universities had previously won a court challenge to the National Science Foundation policy to cap facilities and administration rates at 15%. The Trump administration subsequently appealed this ruling but has now filed a motion to voluntarily dismiss its appeal. Existing NSF rates apply pending future change.

The UW has been participating in the national conversation on the future of indirect cost recovery. UW leaders have provided impact analysis and policy suggestions as members of the subject matter expert team for the Financial Accountability in Research (FAIR) model developed by the Joint Associations Group (JAG) on Indirect Costs.

Workforce Pell

The new Workforce Pell program, slated to be implemented by July 1, 2026, will extend Pell Grant eligibility to short-term training programs (150–599 clock hours, 8–15 weeks). While some eligibility requirements have already been defined, additional details will be determined through the U.S. Department of Education’s negotiated rulemaking in December 2025 and January 2026.

Impact

National TV ad highlights research, teaching across the Big Ten

The collective positive impact of the UW and other Big Ten universities is being highlighted for millions of people nationwide via a new ad airing during Big Ten football and other sporting events. The UW played a key role in developing the “We Are Here” ad, which is the first in a planned series of three that will roll out over the course of the academic year.

Updates on federal research funding and pause of promotion and tenure clock

As we approach the end of the academic year, we continue to monitor developments at the federal level related to research funding and other policies affecting the University. I am writing to update you on the current federal landscape and actions UW leaders are taking to plan for contingences and make financial decisions during a continuously evolving situation.