While the U.S. federal government is operating, some federal grant funding and programs are being modified or eliminated for 2025 due to recent executive orders, shifting priorities, and end-of-year fiscal procedures.
Specific examples include the elimination of certain discretionary grants from the Department of Education for minority-serving institutions and the pausing of federal funding for Diversity, Equity, and Inclusion (DEI) programs. Additionally, the end of the fiscal year on September 30, 2025, caused temporary system shutdowns and processing delays for some federal student aid programs.
Program-specific changes
Department of Education: The Department of Education ended funding for discretionary grant programs that it stated have a discriminatory impact, while continuing to fund mandatory programs, such as those that support minority-serving institutions.
Diversity, Equity and Inclusion (DEI): An executive order from January 2025 terminated federal activity related to DEI, freezing billions of dollars in federal grants and loans connected to these programs
Office of Special Education Programs: OSEP, a key funding source for special education grants, has been shut down, impacting funding for special education teachers, aides, and other related services.
Department of Justice: The DOJ has terminated or reduced funding for a number of grant programs, particularly for organizations that provide training and technical assistance.
General impacts
System Shutdowns: As of October 1, 2025, the G5 system, which processes federal student aid funds, was unavailable for schools to draw down funds for Campus-Based, Pell Grant, TEACH Grant, and Direct Loan programs.
Government shutdowns: A government shutdown on October 1, 2025, was narrowly averted by a continuing resolution, but some programs were already affected by executive orders and end-of-year procedures.
Funding
pauses: The initial pause on federal grants was intended to last only a few
days, but its effects have continued to be felt due to the large number of
programs involved and the large amount of funding that was blocked.
How to get more information
Check with the funding agency: The best source for information on specific grant programs is the agency that administers them. You can contact the agency directly to see if your program has been affected and what your options are.
Contact your grant administrator: you have an existing grant, contact your grant administrator to discuss the impact of any changes. They may be able to provide guidance on how to proceed.
Monitor news and official announcements: Keep an eye on official government announcements and news reports for updates on federal grant programs.
Significant federal grant changes are occurring in 2025, with major impacts driven by new executive oversight, potential government shutdowns, and specific programmatic decisions. This is not a comprehensive list, but highlights some of the most notable developments.
Impact
from the 2025 government shutdown
As a result of congressional gridlock over the 2026 fiscal year budget, a federal government shutdown began on October 1, 2025. Grant programs that rely on annual appropriations were impacted, though the situation remains fluid.
Programs affected: The shutdown impacted agencies like the National Institutes of Health (NIH), Centers for Disease Control and Prevention (CDC), and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), which faced partial or full suspension of operations.
Grants.gov status: While Grants.gov continues to accept and store grant applications, processing is delayed due to reduced federal staffing.
Outlook: A resolution is uncertain. A key issue is the expiration of Affordable Care Act (ACA) tax credits at the end of 2025, which Democrats want to extend.
Impact
from new executive oversight
An executive order issued in August 2025 has created sweeping changes to the federal grantmaking process, impacting applicants and active grants.
Programmatic shift: Federal agencies were required to pause issuing new funding announcements to implement new oversight systems.
Grant termination: All federal grants must now include a provision allowing the government to terminate the project early if federal priorities change.
Funding priorities: Funding is being realigned toward projects that demonstrably advance U.S. national interests, with a new emphasis on workforce development, infrastructure, and social equity.
Financial oversight: Agencies are introducing more stringent financial reporting requirements, including more frequent reports for some grantees.
Grants
impacted by specific policies
Changes have occurred in several areas, including the U.S. Department of Education ending discretionary funding for some programs supporting minority-serving institutions. Authorizations for certain Health and Human Services programs, such as community health centers and TANF, also expired. Additionally, a proposed 2025 budget includes the potential elimination of various programs.
How
to get current information
Official federal websites like grants.gov and the White House Office of Management and Budget (OMB) are sources for current information. Grant recipients should also contact their federal grant officer about any changes.
https://www.google.com/search?q=ending+federal+grants+2025
Comments
The rules for maintaining “non-profit status” needs to be tightened back to pre-2000 levels. All Federal Grants should be reviewed and decreased or removed.
Norb Leahy, Dunwoody GA Tea Party Leader
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