Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Federal Funding topic
No spam. Unsubscribe anytime.
Board of Regents briefed on FAFSA operations, federal funding pause and impact of NIH indirect cost cap
Summary
Deputy commissioners told the Board of Regents that FAFSA is operating as intended, OCHE is tracking a temporary federal funding pause and an executive order affecting grants, and NIH caps on indirect cost returns could reduce campus research overheads; legal counsel said campuses are monitoring compliance with the Department of Education guidance.
Deputy Commissioner Galen Hollenbaugh and Interim Deputy Commissioner Joe Thiel told the Montana Board of Regents on March 13 that FAFSA is functioning this year and that the Montana University System (MUS) is monitoring federal developments that may affect campus programs. Hollenbaugh summarized Department of Education activity and federal funding trends; Thiel described a short-term federal funding pause, an executive order on grants and contracts, and a recent NIH policy that limits returns on indirect costs for federal grants, which could lower research overhead recovery for campuses.
Ali Bovingdon, OCHE chief legal counsel, said legal teams across MUS campuses are carefully tracking federal actions and have determined that MUS is complying with expectations in the Department of Education’s “Dear Colleague” letter. Commissioner of Higher Education Clayton Christian told the board there are opportunities to improve engagement with the Department of Education and other Washington, D.C., entities to protect student success and research interests.
Thiel explained that indirect costs (IDC) cover campus expenses that support research activity and that any cap on IDC returns would have short- and long-term budgetary implications for research administration and campus facilities that support sponsored projects. Hollenbaugh added that OCHE is coordinating with campuses to assess immediate effects and to identify advocacy or administrative steps that could mitigate budget impacts.
The board did not take a formal vote on policy changes at the meeting; staff described ongoing monitoring and indicated they will return with additional analysis if needed. The commissioners said they expect to continue coordinating with campuses and legal counsel and to update the board as federal guidance and funding conditions evolve.
