The US National Science Foundation (NSF) is set to award approximately 30% fewer new research grants this fiscal year compared to last year. This significant decrease follows a trend that began after President Donald Trump took office, resulting in the lowest number of new grants awarded in over four decades.
The NSF, a major supporter of basic science research, has faced challenges due to staff cuts and budget uncertainties under the Trump administration. However, the main cause of the decline in 2026 is $1 billion from its $8.8 billion budget being held in a central account, inaccessible to core grant programs. Much of this funding is allocated to a White House initiative called the Grand Research Challenges, focusing on fields like advanced materials and artificial intelligence.
As of August 19, the NSF had issued 5,684 new grants, with around 400 additional grants pending processing. By September 30, the end of the fiscal year, the total is expected to be about 6,100 grants—46% fewer than pre-Trump averages. This level hasn’t been seen since the early 1980s.
Researchers face delays as many proposals are stuck in a “pending purgatory,” neither approved nor rejected. Jarett Wilcoxen, a chemist at the University of Wisconsin–Milwaukee, expressed frustration over his pending grant proposal, highlighting the impact on student training and academic progress.
The NSF stated it is still prioritizing foundational research as outlined by the Trump administration, focusing on longer and larger grants to reduce administrative burdens. However, it did not address questions about withheld funds directly.
The $1 billion held centrally can be spent next year, but withholding such a large portion of the budget in one year is unprecedented, according to Neal Lane, a former NSF director. Early in the fiscal year, a 43-day government shutdown delayed grant reviews and award processing. Additionally, $300 million was unexpectedly clawed back from two NSF divisions in July, affecting over 150 approved grants.
The clawback added to a larger pool of funds for the Grand Research Challenges project. An internal ledger revealed the total pool is $1.016 billion. A portion of this money, about $110 million, was redirected from the NSF’s education directorate, which had been allocated to diversity programs ruled unconstitutional by the Department of Justice.
This funding limbo has left researchers and institutions waiting, with significant implications for science education and workforce diversity.