By Kritika Agarwal
Financial and other pressures are mounting on research universities across the nation as the government shutdown drags on into its fourth week.
It has now been nearly a month since federal science agencies, such as the National Institutes of Health and the National Science Foundation, have reviewed any grant proposals or issued new awards. In addition to creating costly backlogs, this stoppage has slowed the pace of scientific innovation and created significant funding uncertainties for university researchers and students.
While institutions with active grants can usually continue to draw funds during a shutdown, they cannot access technical or administrative support from agency staff. University researchers also cannot collaborate with federal employees at science agencies during a shutdown. For example, federal employees cannot participate in workshops and conferences during a shutdown, even if those efforts are being supported by agencies as a part of a specific research project.
In addition, many university researchers’ salaries are covered, in part, by federal grant funds. While most universities have contingency reserves to continue research operations during a temporary government shutdown, those funds may soon begin to run out, forcing universities to make difficult choices about where they make cuts to research projects, personnel, and other support.
For example, the Georgia Institute of Technology said in a statement that it has activated “mitigation strategies to help preserve cash, maintain campus operations, and fulfill our academic and research mission,” as a result of the “continued shutdown and delayed payments from federal sponsors.”
The university noted that, as a result of the shutdown, it will soon start limiting major contracts and purchases, non-essential travel, new hires, and consulting services to “slow expenditures and preserve cash.” (The university said that it typically receives more than $100 million per month to cover federally funded research activities.)
“What always happens is the longer it goes on, the more impacts you start to see,” AAU Senior Vice President for Government Relations and Public Policy Toby Smith told Inside Higher Ed.
As the shutdown prolongs, the federal government will continue to scale back operations and furlough additional workers. Federal courts are already operating on a limited basis and the administration is attempting to use the shutdown to reduce the federal workforce further, including at the Department of Education. While the staff reductions at the department have been temporarily paused due to a court order, if allowed to proceed, the new layoffs “would functionally wipe out the offices that handle two of the agency’s core functions: dispersing federal money to states and school districts, and enforcing federal special education and civil rights laws,” The New York Times reported.
The administration announced earlier this month that it would pay troops during the shutdown by repurposing “$8 billion of unobligated research development testing and evaluation funds” (RDT&E) from FY25, which could end up having an adverse effect on university research projects sponsored by the Department of Defense. Multiple states are also warning that SNAP (Supplemental Nutrition Assistance Program) benefits may be disrupted due to the shutdown.
The shutdown is largely the result of an impasse between Republicans and Democrats over an extension of healthcare subsidies. Democrats argue that any extensions in government funding must be accompanied by an extension of subsidies under the Affordable Care Act that make health care premiums affordable for Americans, while Republicans insist on extending government funding without addressing insurance premiums or any other issues.
AAU President Barbara R. Snyder has urged Congress and the president to work together to reach an agreement to fund the government. “The longer Congress fails to reopen the government, the more sustained the shutdown’s effects will be on students, faculty, and researchers,” she said.
Kritika Agarwal is assistant vice president for communications at AAU.