Dear Rice community,
As the university closes out the fiscal year, we want to express our sincere gratitude for your continued hard work, dedication and innovation. This year, your efforts have brought progress and impact for Rice even during a period of unprecedented challenges, disruptions and uncertainty in higher education. Your resilience and passion for our mission make all the difference and will be critically important in the years ahead.
As we look ahead to the next year, it is becoming clear that the financial outlook for all universities is facing significant challenges — and that Rice will not necessarily be immune from these national trends despite a reasonably sound financial position. For example, significant reductions in federal funding are directly impacting Rice. Federal funding is down 26% this fiscal year, driven by unexpected cuts to agencies like the National Science Foundation. The uncertainty ahead compels us to be more prudent and agile in how we invest and steward our resources for FY26 and beyond. We will do this while maintaining a deliberate focus on our key priorities.
To continue advancing our initiatives — especially in research — we’ve had to reassess practices and reallocate funds to sustain this vital focus. For example, we maintained prior year total spending in institutes and centers. At the same time, we redirected funding originally planned for growth to create a bridge fund for existing projects and researchers impacted by federal funding cuts. We know these changes will affect various levels of the Rice community, and we are grateful for your understanding as we navigate this new reality together.
These moves coincide with the previously planned Voluntary Separation Incentive Program, a one-time benefit designed to support staff who may be considering transitioning from Rice. The response to this initiative has been robust and reflects our intention to offer staff personal flexibility, financial appreciation for their service and the ability to help shape a smooth transition for their teams. As we consider the future, we will use this period to adjust the way we work to ensure our processes are more efficient and we reduce the time it takes to accomplish our regular work. Additionally, the VSIP will leave certain units with vacancies. While units will have authority to make hiring decisions, each unit should carefully determine whether and how to backfill vacancies so that it can make the wisest use of technology, budget and opportunities to collaborate with other units with whom it can share services. The Division of Operations, Finance and Support, along with Human Resources, will be reaching out to all units to assist in making these important long-term funding commitments. It is important that we make decisions about our next steps with an eye toward managing the financial realities we know are ahead of us. Leaning into new ways and new structures will be an important part of FY26.
In times of uncertainty, it is wise to move judiciously. Over the next several months, we will carefully monitor the university’s financial position and share with you how the federal landscape impacts Rice and any changes that will need to be made in our expenditures.
While this moment is causing recalibration for higher education more broadly, it also poses an opportunity for unified intention and prioritization. We are committed to the ambitious goals of Momentous, our strategic vision for Rice’s future. We will pursue our goals with the same bold spirit that has always defined this institution, and we will move forward with creativity and a renewed focus.
Our mission — to aspire to groundbreaking research and unsurpassed education for the betterment of the world — calls us to action. And our values — excellence, access, innovation and community — guide us. They are what keep us steady, especially in challenging times.
Thank you for your dedication to Rice and to one another.
With gratitude and best wishes for the remainder of the summer,
Reginald DesRoches, President
Amy Dittmar, Provost and Executive Vice President for Academic Affairs
Kelly Fox, Executive Vice President for Operations, Finance and Support