This message was shared with the students, faculty and staff of the 10-campus University of Hawaiʻi system on September 2, 2025.
Aloha UH ʻohana,
As we begin a new academic year, I want to provide an update on federal policy changes since my July 21 message, which I encourage you to read if you have not already. Keeping abreast of these federal changes is important to understanding our University decision making. While recent developments continue to pose challenges for higher education in Hawaiʻi and across the nation, I remain confident in our ability to meet these challenges together.
NIH grants: Supreme Court decision and its implications
The U.S. Supreme Court decided a case on August 21 that affects more than 1,000 National Institute of Health (NIH) grants tied to race and gender that had been terminated because of an earlier executive order issued by President Trump. A lower court had issued a ruling requiring reinstatement of these grants, and UH had some grants reinstated as a result. In a closely divided 5-4 decision, however, the U.S. Supreme Court stayed the reinstatement decision, allowing the terminations to proceed while the case is being decided on appeal. The Court did reject the administration’s request to overturn immediately the lower court’s finding that the policy directive of the EO was unlawful.
The NIH may now re-terminate grants that had been restored as a result of the lower court order while the case is decided at First Circuit Court of Appeals. The outcome could set significant precedent for research funding stability and institutional autonomy.
On an encouraging note, several major UH NIH awards remain intact at this time. We will continue to monitor this case closely for its broader implications.
Impact of new federal grantmaking order: Delays and challenges
On August 7, the administration issued an executive order titled Improving Oversight of Federal Grantmaking, which increases federal control over discretionary research grants. In the short term, we expect delays in the release of new funding opportunities as agencies adjust to new approval processes.
The order also directs agencies to give preference to institutions with lower indirect cost rates, which continues to pressure research universities to accept lower rates—an issue currently being litigated. It also encourages agencies to include “termination for convenience” clauses that allow agencies to end awards if they no longer serve federal priorities, meaning grants can be ended at federal discretion. In addition, future awards may carry stricter requirements for drawing down funds.
These changes add to the uncertainty for current and future research support, and we continue to work to understand and mitigate the impact on our research activity. Faculty and researchers can find the latest guidance on the resource web page managed by the Office of the Vice President for Research and Innovation.
New admissions data reporting requirements
Also on August 7, the administration issued a directive titled Ensuring Transparency in Higher Education Admissions and later requested comment on its plan to expand the collection of data required by the Integrated Postsecondary Education Data (IPEDS) report. This action requires the Department of Education to collect and publish six years of applicant-level admissions data, disaggregated by race and sex, along with GPA, test scores, family income, Pell eligibility, parents’ education and graduation rates. Previously, federal reporting focused only on enrolled students. These requirements would be applicable to all four-year institutions that utilize selective college admissions, so community colleges would not need to report on this data.
DOJ guidance: Increased scrutiny on DEIA initiatives
On July 29, the Department of Justice (DOJ) issued a memo titled Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination. This guidance outlines the DOJ‘s interpretation of civil rights law and highlights practices they consider potentially unlawful, particularly concerning DEIA initiatives. These include preferential treatment based on protected characteristics, the use of proxies that act as substitutes for such characteristics, and segregation of programs or facilities and training that could be perceived as stereotyping or exclusionary.
Taken together with earlier guidance, the memo signals that federal scrutiny of DEIA programs will continue and institutions risk legal or funding consequences if found to be out of compliance.
Federal budget outlook
Finally, there are still a lot of unknowns when it comes to the next federal budget. On the positive side, the Senate Appropriations Committee recently advanced a bipartisan funding bill that protects the Pell Grant maximum at $7,395, maintains TRIO and campus childcare programs, and increases NIH’s base budget by $400 million. The House version, however, is expected to differ significantly, with deeper proposed cuts still possible. Negotiations will begin this month to reconcile the two versions, and Congress must act before September 30 to avoid a government shutdown. Most expect a continuing resolution will be needed to extend current funding, though the length and conditions remain uncertain.
Looking ahead
We should expect more executive orders, memos, and federal actions in the months ahead. UH leadership is monitoring these developments closely in collaboration with Hawaiʻi’s congressional delegation, the Governor and Legislature, the State Attorney General and national higher education associations. Internally, our leadership teams, including campus chancellors, the UH Mānoa provost, and System vice presidents, meet weekly, and I also meet regularly with the Presidential Advisory Council on Federal Policy, which represents stakeholders across all 10 campuses.
Throughout this time, we will continue to be guided by our values and our mission to provide affordable, high-quality higher education to our students.
We also will continue to update our UH Federal Policy Updates and Resources webpage so that you have a central place to find information, including links to executive orders and memos, leadership messages, FAQs and more.
Mahalo for all you do to support our students and one another. I will continue to provide updates as new developments emerge.
With aloha,
Wendy Hensel
President, University of Hawaiʻi
Stay connected with President Hensel on X (Twitter), Instagram, and LinkedIn.
