Dear Members of the HMS Quad Community:
We are writing to share two communications from our University colleagues providing updated research guidance. The first message, from Chief Financial Officer Ritu Kalra and Vice Provost for Research John Shaw, focuses on the status of and approach to federal research funding. Immediately beneath that, the second message from Assistant Vice President for Sponsored Programs Kelly Morrison and Chief Research Compliance Officer Ara Tahmassian provides guidance for researchers as they resume work on reinstated and newly awarded grants.
As always, please direct any questions on this guidance to our local offices — the Office for Research Administration and/or Office for Academic and Research Integrity — who will stay in close touch with Ara, Kelly, and their offices.
We are reassured that HMS has now received payments for the vast majority of the expenditures incurred on our unlawfully frozen and terminated awards. To be clear, these payments are reimbursements for past work.
However, it is important to acknowledge and reiterate that the future status of federal research funding remains uncertain. We are facing a reduction in our negotiated rate of essential research support costs (“indirect costs”), changes to the selection criteria for new grants, and threats to our eligibility to apply for and receive future grants and federal funding. Moreover, the earnings on our endowment are now subject to an unprecedented tax, which erodes our capacity to support our missions of research, education, and service.
Given these uncertainties, which are compounding the risk of structural deficits, we must continue to exercise restraint and take this opportunity to restructure. We know several questions remain regarding the status and availability of research sustainability funds via departmental block grants. We are working closely with our University colleagues and leaders on this and other questions, and we will provide more guidance soon.
These times are unprecedented for sure, but please know that we are committed to working with each of you to ensure you can continue to thrive here. The positive impact of your work is without question. Thank you for your ongoing patience and commitment to HMS, its future, and our shared goal to advance our research mission with prudence, care, and a spirit of community.
Sincerely,
George Q. Daley
Dean of the Faculty of Medicine
Harvard University
Julie Joncas
HMS Chief Financial Officer
Kristin Bittinger
HMS Dean for Faculty and Research Integrity
Rachel Cahoon
HMS Chief Research Administration Officer
INTERNAL COMMUNICATION FROM RITU KALRA AND JOHN SHAW
Good morning,
As you are aware, in early September the U.S. District Court for the District of Massachusetts granted Harvard’s motion for summary judgment, holding that the federal government’s freeze of research funding and subsequent mass terminations of awards were unlawful actions. In response, federal agencies reinstated most of the over 900 awards that had been unlawfully terminated. We have also now received payments for the vast majority of the expenditures incurred on these previously frozen and terminated awards. Thus far, payments have generally continued during the government shutdown. We are grateful to our research community for sustaining essential work during this period of uncertainty.
With grants reinstated and payments now coming in, we enter a next phase in advancing the work of existing and newly awarded federally sponsored projects. Beginning today, investigators should resume the activity necessary to fulfill our commitments under reinstated or newly awarded federal grants and are no longer asked to operate through research continuity funds that were put in place earlier this spring.
While the reinstatement of awards marks a significant and positive milestone, it does not resolve the broader challenges before us. Even with the restoration of funds on frozen or terminated awards, we continue to face significant and potentially prolonged uncertainty about federal scientific funding. With respect to our existing grants, the government has stated its intention to appeal the ruling and has initiated additional measures that might prohibit Harvard from receiving federal research funding. Looking forward, the scale and pace of future federal research funding is likely to be reduced — at Harvard and beyond. In addition to a significant reduction overall in new research grants in FY25, we are monitoring budget proposals that would drastically reduce federal research dollars and indirect cost recovery in future years, along with changes to the administration’s selection criteria for awarding new grants. Consequently, in advancing the aims of existing sponsored projects, investigators are expected to exercise financial prudence and flexibility, avoiding new, long-term or multi-year commitments wherever possible. The heightened potential for recurring disruption demands that we take a prudent approach.
The Office for Sponsored Programs and the Office of the Vice Provost for Research will soon send a follow-up communication with specific operational details for distribution to Schools’ research administration communities.
We deeply appreciate your partnership as we navigate this period together.
Best,
Ritu & John
Ritu Kalra
Vice President for Finance and Chief Financial Officer
Harvard University
John H. Shaw
Vice Provost for Research
Harvard University
INTERNAL COMMUNICATION FROM KELLY MORRISON AND ARA TAHMASSIAN
Good morning,
As shared in the message above from Ritu Kalra and John Shaw, we recognize the challenges for investigators to continue work and advance progress on their active projects amid an uncertain federal research funding landscape. As we are now receiving reimbursement payments from the federal government, we write to provide updated guidance for investigators as they resume the activity necessary to fulfill commitments on reinstated and newly awarded federal grants without operating through research continuity funding. We will continue to provide updates as appropriate.
Spending on Reinstated and Previously Frozen Federal Awards – Resuming Activity with Prudence
- Researchers should spend on their existing grants as necessary to meet the specific aims of their projects and in accordance with sponsor terms and conditions.
- Investigators are expected to exercise strong financial prudence and flexibility, avoiding new long-term or multi-year commitments (e.g., personnel, contractual).
- New hiring and backfills should be carefully evaluated. The hiring freeze remains in place; before proceeding with any exceptions, consider redeploying existing personnel where possible and appropriate, and discuss any new hiring needs with your School leadership.
- Researchers should continue to charge expenditures to existing accounts.
- Further information regarding the management of these accounts looking forward will be provided to the research administration community in the upcoming week.
Income Application
- On Friday, October 17th, all payments received on previously frozen and terminated grants will be posted to specific, applicable awards.
- This posting will reflect all income received through Wednesday, October 15th.
- Moving forward, income will be posted on awards at its regular cadence, which is typically within two business days of receipt.
Outgoing Subawards
- In June, we advised outgoing subrecipient institutions impacted by federal award terminations that any future spending on active subawards would be at the financial risk of the subrecipient.
- Subrecipients were also advised that, in the event we began to receive reimbursement from the federal government, we would look to recover costs incurred after June 4, 2025 under their subawards as well.
- Next week, we will begin outreach to subrecipients to request invoices for the period during which they were operating at their own financial risk (i.e., for expenses incurred after June 4, 2025).
- We will advise subrecipients that our ability to reimburse their expenses assumes we continue to receive payment from our federal sponsors.
- In partnership with the Schools, we will also use this opportunity to ensure that these outgoing subawards are reviewed to determine if any additional amendments or contractual modifications may be needed at this time.
As a reminder, if researchers or administrators receive stop work orders, terminations, or other notifications of any federal funding interruption, please contact the Office for Sponsored Programs. As the situation continues to evolve, we will communicate the latest developments. We also encourage you to continue to refer to our recently updated FAQs, which will continue to be updated on an ongoing basis. Do not hesitate to reach out to us with any questions.
Kelly & Ara
Kelly Morrison
Assistant Vice President
Office for Sponsored Programs
Ara Tahmassian
Chief Research Compliance Officer
Office of the Vice Provost for Research