October 1, 2025
Dear UC colleagues,
This week, the University of California faces yet another challenge: With no funding bills or continuing resolution in place, the federal government has effectively shut down.
You may be wondering what this means for UC — especially for students who depend on financial aid to pursue their education, for researchers and faculty who rely on federal funds to run their labs, for our medical centers that seek reimbursements from the federal government, and for many other programs that rely on federal support. Here’s the current breakdown:
The short-term impacts on UC are expected to be limited, but the long-term picture is less clear. Much will depend on how long the shutdown lasts and on guidance from the Office of Management and Budget and individual federal agencies.
At this stage, we don’t anticipate major immediate impacts on our research enterprise. However, UC campuses won’t be able to draw down federal funds, and agencies are unlikely to issue new contracts, renewals, or awards until the shutdown is resolved. UC’s Office of Research and Innovation has created a shutdown guidance webpage, which will be updated regularly as new information becomes available. I encourage you to visit that page for the latest information.
We also do not expect near-term effects on federal student aid since the education funding bill currently under consideration applies to student aid programs in the academic year that begins in July 2026. Still, we are closely monitoring potential impacts on student aid and education programs, as well as on education grant programs, visa processing, and veterans’ services.
In health care, core programs like Medicare and Medicaid are not subject to annual appropriations, although there is no precedent for how these programs would be impacted in a prolonged government shutdown.
Because many federal programs pause or slow down during a government shutdown, our focus now is on keeping UC operations on track as best we can while closely monitoring these developments. Our Federal Governmental Relations team in Washington, D.C. has prepared a set of message points and FAQs to help campuses and colleagues navigate questions they may be asked about this evolving situation.
Our advocacy and engagement in Washington, D.C., remain critical. UC continues to urge Congress and the administration to reach an agreement on a final deal to fund the federal government for the remainder of the fiscal year and restore stability for the communities we serve. University leadership is in regular contact with federal policymakers, monitoring developments, and preparing for multiple contingency paths.
As always, we will keep you updated. Thank you for all you do on behalf of the University of California.
Best,
Meredith Vivian Turner
Senior Vice President
External Relations & Communications
UC Office of the President
New Resources
UC message points and FAQs regarding a federal government shutdown
UC Office of Research and Innovation federal government shutdown guidance
For ongoing updates and resources, please visit the UC Federal Updates website.