Members of the university community – especially within the research community – have raised questions about future federal funding levels. While the outlook remains uncertain, it is helpful to understand the budget processes involved and how they might affect the University of Michigan.
To help, our Federal Relations team put together a brief overview of some key federal budget processes and terms as they relate to our research enterprise.
BUDGET RECONCILIATION
What is budget reconciliation?
Budget reconciliation is a fast-track process that allows Congress to make changes to taxes, spending or the debt limit with a simple majority vote in the U.S. Senate (rather than requiring 60 votes to end debate), bypassing the threat of a filibuster. It starts with instructions in a budget resolution, followed by committees drafting legislation to meet savings or cost goals.
Where do things stand on reconciliation?
As of April 10, the U.S. House and Senate reached a consensus on a reconciliation framework, but divisions remain over how much spending to cut. The proposed agreement currently aims for at least $4 billion in cuts, with ongoing negotiations to increase that number.
Why does this matter for research or higher education?
Reconciliation could lead to major cuts in federal programs like Medicaid and clean energy tax credits, both of which indirectly affect research universities and their communities. With high political stakes and conflicting priorities, the final bill could reshape federal funding priorities.
PASSBACKS
What are passbacks?
Budget passbacks are a process in which the Office of Management and Budget tells federal agencies how much funding they’re likely to get, which may differ from what the agencies requested. The process helps to shape the president’s budget request. Congress typically creates its own plan.
Where do things stand on passbacks?
A number of the Trump Administration’s FY26 passbacks have leaked to the press. The administration could propose large reductions to federal agency budgets. The full president’s budget request is expected later this month or in May.
Why does this matter for research?
The passback documents signal the administration’s priorities. Congressional priorities are unknown at this point. The outcome of the negotiation between the president and Congress will determine the actual amounts available for research.
The weeks ahead will involve intense negotiations. As always, the Office of the Vice President for Government Relations and the Office of the Vice President of Research are closely monitoring developments, engaging with our federal partners and working through national coalitions to protect critical investments in research and higher education.
We will continue to keep the research community informed with any critical updates.