Dear Georgetown University Faculty and Staff,
In my previous messages and in September town halls, I’ve reported significant federal government actions impacting the Georgetown community.
We announced in April a set of proactive steps to protect the university’s financial health. This involved cutting about $100 million from our initial FY26 budget of roughly $2 billion.
At the town halls, I committed to providing monthly updates as we approach December. At that time, we hope to reassess our projections and set the full year budget. This is the October update.
It is now certain that the $100M cut in April was prudent. However, many uncertainties remain. Thus, it’s too early to know the outcome of the December review — whether we could relieve some of the constraints on spending or whether more cuts will be needed.
I will provide another update in November.
Below are comments on specific uncertainties Georgetown faces.
Remaining Financial Uncertainties:
- Federal Funding of Georgetown Research: Federal actions have already created a significant disruption to our research enterprise, resulting in the interruption and termination of many research projects. The future of Indirect Cost (IDC) rates has yet to be resolved by the courts or new regulations. The possibility of a prolonged federal government shutdown threatens to delay funding disbursements, stall peer reviews, and reduce future funding. Future federal funding of research remains uncertain, and we are working to seek alternative research funding sources. Our projection of a $35M annual loss is higher than our earlier estimate.
- International Students: New visa and immigration policies contributed to a steeper decline than anticipated in Georgetown international graduate student enrollment (down 20%), though our overall graduate enrollment decline is only 3%. There was some success in our offering tuition discounts to some laid-off federal workers and recent Georgetown alumni, but that means reduced revenue per student. Further, some programs offered online classes for students with delayed visas. Great uncertainty remains about whether there will be a multi-year reduction in international students.
- Graduate Loans: GradPLUS loan features will end in July 2026. That is certain. The office of the Chief Financial Officer is actively working on alternative mitigations for the change in the loan programs. However, the effect of this change on graduate applications for fall 2026 remains unknown.
- Additional Matters on our Radar: New tariffs are increasing the price of goods and services. Utility costs are rising rapidly.
I know that the mitigation actions of April (e.g., pausing of merit increases, hiring freezes) are painful. We remain deeply grateful for your patience. It is important to acknowledge that the shared sacrifices we are making are essential to securing the University’s financial stability. This sharing has avoided the mass layoffs occurring at our peer universities.
These are disruptive times. Your ongoing commitment to Georgetown’s mission will allow us all to weather this storm. Remember that the work we do each day is honorable and good for the world. Thank you.
Sincerely,
Robert M. Groves
Interim President