How does the federal shutdown affect URochester

In a Q&A with Josh Farrelman, the vice president for government relations discusses current issues and future implications.

The University of Rochester's partnership with the federal government and bipartisan support from Congress have helped it become one of the nation's leading research institutions, an economic driver for the region and its largest private employer, and the largest safety-net (serving the uninsured, underinsured, or individuals who may be unable to pay) and healthcare provider in New York state outside of New York City.

The Office of Government and Community Relations (OGCR) helps maintain this status by developing and advancing URochester's state and federal budget, legislative, economic, and regulatory priorities, and by serving as the University's principal advocate in Washington, DC, Albany, and Rochester.

OGCR works closely with the University community to provide faculty, staff, and administrators with information on current legislation and regulations that affect URochester at the federal, state, and local levels. They also regularly interact with peer institutions, higher education and medical associations based in Washington and Albany, and scientific coalitions and societies, among others, to advance URochester's interests.

In addition to making frequent trips to Washington, the office will bring elected officials and their staff to the University to see its world-class facilities and meet directly with URochester leaders, researchers, and students.

Unprecedented and uncertain times for higher education, research, and academic medicine have led to the amplification of all these efforts. Joshua Farrelman, the vice president for government relations, answered some questions about the ongoing federal government shutdown, entering its fifth week with no clear path to resolution in sight.

Q&A with Josh Farrelman

What kinds of things was the University doing in the period heading into the budget deadline to prepare for a shutdown?

Farrelman: Before the shutdown our federal relations team was in regular contact with our Congressional delegation. We were urging them to reject proposed cuts and grant eliminations, mitigate the impact of harmful executive orders and agency actions, support the University's federal priorities, ensure that the government remains open, and come together to reach a bipartisan agreement to finalize fiscal year 2026 annual spending to fund the government. Despite the shutdown, we continue to do this now.

We were also keeping the University community updated on the prospects of a government shutdown, reminding them of what happened in previous shutdowns, and sharing department contingency plans so leaders and departments could prepare as best as possible.

As the shutdown continues, in addition to our Congressional delegation, we are in daily contact with our national associations, including the Association of the American Universities, Association of American Medical Colleges, American Hospital Association, and several others, to monitor the situation and assess and communicate the impact to our students, researchers, providers, and patients.

In light of the challenges we are facing, we also formed a new Buffalo-Rochester-Syracuse regional higher education, healthcare, and business coalition. We regularly meet to share and information and to advocate with our Congressional delegation, highlighting the critical impact federal funding and policies have on our institutions and upstate New York.

Now, in the midst of the shutdown, what effects are we currently experiencing and working to mitigate across our research and operations?

Farrelman: While we have experienced shutdowns in the past, this one is different from anything else we have previously experienced.

First, URochester has been dealing with uncertainty and a constantly shifting federal landscape for nearly a year. The lack of stability and support-paired with financial challenges, including rising costs for labor, healthcare, and supplies-makes weathering the current shutdown that much more difficult.

Additionally, while Congress has not passed any of its annual spending bills, the impact of the shutdown has been administered unevenly across the federal government. Crucial research funding and other aspects of university and healthcare operations are among the collateral damage of any prolonged lapse in federal appropriations.

Fortunately, there is currently a minimal impact on our health system and the patients it serves across upstate New York. Medicare reimbursement should continue to be paid during a lapse in federal appropriations. Still, Medicaid funding will only be sufficient through the first quarter of fiscal year 2026.

Legal authority for some key healthcare programs, like telehealth, have expired, and this has disrupted care and access to those services for some of our patients, particularly for seniors, those with disabilities, and those who live in rural areas. Also, an $8 billion cut to the Medicaid Disproportionate Share Hospital program, which supports safety-net providers, went into effect on October 1, resulting in millions of dollars in losses for the Medical Center if Congress doesn't act to reverse it.

Despite these challenges, the Medical Center and its affiliates remain committed to preserving access to care for all our patients and communities, and we are taking all necessary steps to minimize disruption to essential services.

What's happening on the academic side?

Farrelman: Students continue to receive Pell Grants and loans, and institutions will retain access to existing federal funds (campus-based aid). However, borrowers seeking assistance may face delays, and loan forgiveness applications could be affected if the shutdown persists.

The shutdown has further disrupted federally funded scientific research on top of the deep cuts already administered. These cuts are significant because meaningful, effective research is not a spigot that can be turned on and off. It needs strong, sustained funding and support.

During periods of government shutdown, no new grant funding opportunities are announced, and no new grants are awarded. Scientific review panels are delayed or canceled. Program managers and agency staff who are furloughed are not allowed to access their government email, so they cannot communicate about grant programs, active awards, or potential proposals.

Awardees will be able to continue using already awarded funding as long as activities are under the agreed-upon award budget and period, as no extensions or supplements would be processed.

What are the concerns if Congress doesn't find a way to reach an agreement sooner than later?

Farrelman: During previous shutdowns-partial or otherwise-attempts were made to minimize the impact. However, the longer this shutdown continues, the more federal workers will be furloughed or terminated; the more activities, programs, and grants will be delayed, paused, or outright eliminated; and the more sustained the shutdown's effects will be on students, faculty, researchers, and our patients.

What are some possible outcomes you're planning for that might affect students, faculty, and clinicians?

Farrelman: Even if the government were to reopen tomorrow, federal research agencies would need time to get back up to speed, affecting URochester projects for weeks or even months to come. There will be a significant backlog at federal agencies, so further delays in announcing awards, contracts, or new grant programs are likely. Additionally, agencies will have a reduced timeframe to implement programs and priorities, which could result in short deadlines and tight turnaround times for opportunities that are put forward. Some programs may also be indefinitely delayed or canceled, as agencies lack the capacity to complete all previously planned activities.

We will experience the long-term effects through lost opportunities, delays in potential medical breakthroughs, economic losses, a weakening of national security, the negative message it sends to young investigators, the damage to the overall scientific workforce pipeline, and the harm to US global competitiveness.

Is there anything we, as a University community, are doing or can do to help during this process to support a strong future for research and education?

Farrelman: Part of our job is storytelling and personalizing the impact federal actions have on URochester. If the shutdown is directly affecting your work or the work of a University employee you know, please contact me or a member of our federal relations team in the Office of Government and Community Relations. We are always looking for examples to share with members of the New York Congressional delegation.