Stanford, Tech Giants Quietly Eye Government Shutdown

Although a looming government shutdown is not likely to impact existing federally funded research programs or private contracts, it will nonetheless freeze any new commitments and could therefore impact numerous Silicon Valley institutions.

Ann Arvin, Stanford University’s vice provost and dean of research, and Randy Livingston, vice president for business affairs and CFO, sent a letter Thursday to faculty and research administrators that addressed the impacts of a possible government shutdown.

The letter, obtained by Patch states that Stanford has “not received any specific guidance from federal agencies regarding continuation of sponsored projects during the shutdown,” but that the university does not anticipate any negative impact to previously approved federally funded programs.

“All Stanford research activities may continue until further notice,” the letter says.

The American Association of Medical Colleges offered Stanford further guidance regarding National Institutes of Health-funded trials, noting that as long as awarded funds are automatically processed, there should be no interruption in funding. If, however, a federal employee is required to intervene in drawing down funds, “then draw-downs will likely cease,” the letter says.

Beyond Stanford University, Silicon Valley tech firms are also keeping a watchful eye on the developments in Washington.

Jeremy Bulow, Richard A. Steppe professor of economics at Stanford, said companies dealing with the government are likely weighing important questions regarding the impact of a shutdown.

“Questions people would want to know are things like, are the bills that you send out to the government every month going to be paid on time or going to be delayed,” said Bulow, “just like an individual would be interested to know if their income tax return will come in on time.”