In Brief
How to continue planning in a shape-shifting landscape
- Federal policy updates are reshaping research funding, necessitating proactive financial modeling, savings identification, and efficiency improvements in higher education and research institutions.
- Proactive steps now include expanding grant impact estimates, revising policies to offset funding reduction, and streamlining operations for efficiency-focused investments.
- Developing a strategic, multi-faceted response plan to address funding uncertainties helps ensure long-term success in the research landscape.
Federal directives and policy updates are reshaping the regulatory and enforcement environment. Among the changes, funding agencies have seen significant personnel changes, and federal funding programs are under detailed scrutiny.
While near- and long-term planning may seem implausible, higher education and research organizations can take proactive steps now to chart a strategic path forward.
Near-term call to action
- Model grant and contract financial impact: Most institutions have already estimated, at a high level, the potential financial implications across various future indirect cost scenarios and grants and contracts that may be at risk under executive orders. Use this time to expand estimates and iterate on more detailed, compounded scenarios so that research, financial, and academic leaders can prepare near- and long-term strategies for addressing the financial impact.
- Identify near-term savings opportunities: Understand how your institution is currently using internal funds to support research and where opportunities may exist to offset reduced external funding for indirect costs. Voluntary cost share, subsidies to core facilities, and indirect cost return distribution are some policies that could be revised to conserve institutional funding.
- Act to improve long-term efficiency: Institutions planning for major projects, like electronic research administration (eRA) or enterprise resource planning (ERP) implementations or significant reorganizations, may think that now is not the time to begin such capital investments. The financial pressures resulting from federal funding changes can actually elevate and escalate this business case. Use this time, and perhaps a quieter administrative period if federal funding and new awards temporarily slow, to streamline research administration service delivery and optimize new or existing technology to improve efficiency long-term.
Moving forward
Although the future of research funding is uncertain, preparedness can lead to success. Most importantly, the collective research industry can meet anticipated challenges and tackle them head-on by starting early and developing a strategic, multi-faceted response plan.