By Marc Smithers, Grants Development Associate
As the grant funding environment continues to adjust under the current federal administration, one agency that has seen outsized attention for contraction of available funding has been the National Science Foundation (NSF). The agency, founded in 1950, is one of the largest funders of non-medical scientific research, awarding $8.6 billion over 8,378 projects in 2025. As the current administration has worked to reduce federal spending in a number of areas, one of the agencies targeted most heavily is the NSF. The past two budget requests from the executive branch included drastic cuts to NSF funding, proposing a $5 billion reduction in fiscal year (FY) 2026 and another $4.8 billion reduction for next year's FY 2027 budget. Budgetary requests like this can dominate headlines to such an extent that grantseekers have a hard time knowing what has actually been enacted and what strategies they should employ in the changing landscape. Let's look deeper then, beyond the news stories and into the actual budget, considering what impacts have been seen in NSF decisions, and what actionable steps grantseekers can take with this information.
Contraction, Not Decimation
Though the initial NSF figures proposed for the FY 2026 budget were staggering, the actual cuts enacted with the passage of H.R.6983 in January of 2026 were modest. The total appropriation for the NSF went from $9.06 billion to $8.75 billion, a reduction of about 3% overall. While this reduction has certainly had effects on the operations of the agency, it is important to consider that the overall impact has not been as drastic or immediate as advertised, nor does it show a willingness within Congress to gut scientific research entirely. Funding for Research and Related Activities remained stable, and no directorate within the agency received more than a 5% reduction in its funding levels from the previous year. For the most part, the NSF is currently operating at relatively similar funding levels as in previous years.
These changes have had notable impacts, however, of which grantseekers should be aware. Most importantly, the NSF funded fewer awards in the past year, from 10,592 in 2024 to 8,378 awards in 2025. This drop is especially concerning, considering that the agency received 3,000 more proposals in 2025 than the previous year, decreasing their funding rate to 19% of all reviewed applications, down from 26% in 2024. Unsurprisingly, then, grant cycles are becoming more competitive as funds have been contracted, and this trend is expected to continue.
Another area affected by these cuts is the STEM Education efforts of the NSF, which saw a decrease in funding of almost 20%, down to $938 million. Some popular programs saw their budgets remain flat, such as the Advanced Technological Education (ATE) or Historically Black Colleges and Universities (HBCU) Programs, or even slightly increased, such as the Tribal Colleges and Universities Program (TCUP), receiving a 21% increase. Overall, though, STEM Education programs received less funding, and these impacts will likely affect the agency's ability to open new programs or fund other programs to similar levels as in previous years.
Action Steps to Take
In an environment of increased competition and uncertainty, it is more important than ever for grantseekers to plan ahead, stay informed, and gather resources.
- Plan Ahead: Do not wait for programs to open. Develop core components of proposals, such as rough project narratives, intellectual merit statements, and partnership frameworks, now. Build internal project development timelines that are aligned with previous program cycles so that there is adequate time for the needed collaboration, review, and refinement processes that will ensure you are developing a competitive proposal.
- Stay Informed: Regularly monitor the agency’s website. Sign up for any listservs offered so you can track new solicitations or press releases. Pay attention to any shifts in language that may signal changes in an agency’s priorities, as this will give you an idea of what reviewers will be looking for in their decision-making.
- Gather Resources: Gather a dedicated grantseeking team early, ensuring that internal stakeholders are engaged from the start and institutional leaders are supportive along the way. Proactively collect and organize data, such as student outcomes or research literature, so that when opportunities are announced, you will be ready to respond with evidence rather than quickly gather it reactively.
While these action steps are no less applicable for proposals submitted for less competitive programs, they are especially important in a landscape as fluid and uncertain as the current NSF funding environment. Ensuring that you are well informed about its state of funding and how this may impact programs going forward is the best way to stay competitive in the coming years.