Webinar Review: Strategies to Keep Lab Projects Moving Forward Amid Funding Uncertainties

The laboratory construction and renovation landscape is facing one of its most uncertain financial periods in recent memory. Shifts in federal funding and broader economic volatility have forced institutions, designers, and builders to rethink how projects are planned, financed, and executed. On August 14, 2025, Lab Design hosted the panel discussion Federal Funding in Flux: Lessons Learned and New Strategies for Lab Projects to explore these challenges and share real-world strategies for staying agile.

The discussion—now available to watch on demand—brought together three experts in laboratory planning, design, and construction: Rainey Hufstetler, senior associate architect, Ayers Saint Gross; Ken Mohr, president, HERA Laboratory Planners; and Jeff Zynda, science and technology regional practice leader, principal, Perkins&Will. Together, they examined the financial headwinds reshaping the industry and offered practical advice on how institutions can adapt while continuing to advance critical research infrastructure.

Hufstetler spoke with Lab Design News following the live webinar to offer her thoughts on the evolving funding landscape, the growing need for design flexibility, and the proactive steps institutions should take now to safeguard the future of their research facilities.

A shifting financial landscape

In May 2025, many institutions were already grappling with uncertainty around federal funding streams. Since then, conditions have only grown more complex. With funding priorities in flux, project teams are being asked to revisit scope, rebalance budgets, and make strategic decisions about what can—and cannot—move forward in the near term.

For some organizations, this means pausing or phasing projects. For others, it requires identifying new sources of financial support altogether. The panelists agreed that while these challenges are daunting, they are also accelerating innovation in how projects are structured and delivered.

One of the major themes of the webinar was the importance of flexibility—not only in physical lab spaces, but also in the way architects, planners, and institutions approach decision-making.

As Hufstetler emphasized, the key is to remain nimble in both design and execution: “We often ask our clients to look at flexible solutions for their labs and have specific criteria that aids that flexibility: adaptable casework, modular planning, standardized service infrastructure and the like,” she said. “I think we need to define how we as architects might also be flexible, and assign criteria to ourselves.”

That flexibility extends to project delivery. Hufstetler noted that design teams may need to plan for phasing even when it is not clearly defined at the outset, expand specifications to allow for more product equivalencies, or prepare to shelve spaces for future completion if funding requires it. These strategies not only mitigate disruption but also help institutions sustain momentum when financial conditions change midstream.

Exploring alternative funding models

With federal dollars less reliable, states are beginning to step in to support research infrastructure. “States are beginning to recognize the need to offset losses in federal funding,” Hufstetler explained. “Increasing state funding levels to at least partially compensate for anticipated federal losses seems to the most impactful alternative funding mechanism at this time.”

For institutions without robust internal development or grant-writing teams, this trend could prove critical. Panelists urged attendees to look beyond traditional funding streams and build partnerships that align with local economic and health priorities—whether through state legislatures, industry collaborations, or philanthropy.

Another insight that emerged from the discussion was the way changing funding priorities are reshaping the balance between academic research and healthcare markets. Hufstetler noted that the panel shifted her perspective on this trend: “While we are obviously seeing the greatest impacts to higher education at this time, I had not personally realized there has been a corresponding increase in healthcare markets. The diagnostics vs. research fields may have some interesting long-term implications that I could see potentially incorporating more basic wet research into clinical settings in lieu of the traditional siloed models.”

This integration could accelerate translational research and treatment development—but it also raises questions about placing additional financial burdens on an already strained healthcare system. For lab planners and administrators, the key takeaway is to anticipate how shifting funding sources might alter the type and location of research facilities that will be needed in the future.

Practical steps for institutions

Looking ahead to fiscal year 2026, institutions must act now to keep their proposals competitive and their projects viable. Hufstetler outlined several critical considerations:

• Recognize that initiatives misaligned with political priorities are unlikely to gain traction.

• Prepare for significant changes to indirect cost recovery, with anticipated caps that could reduce overhead reimbursements from 40–50 percent down to just 15 percent.

• Begin retrofitting infrastructure for detailed cost accounting, such as sub-metering utilities, waste management, and other building services, to support more transparent grant applications.

She cautioned, “The tragedy of politicizing research is going to bear out over the next generation, as both higher ed institutions and medical schools have already frozen hiring and admissions to programs that will create a knowledge gap in life sciences for potentially decades.”

For lab leaders, this means adapting operational models now to prevent long-term disruptions in both talent development and research output.

Watch this webinar on demand

Catch our on-demand webinar, Federal Funding in Flux: Lessons Learned and New Strategies for Lab Projects, for a valuable discussion on navigating today's financial challenges in laboratory design and construction.

Our panel of experts tackles the current landscape of federal and state funding, offering a blend of realistic insights and actionable strategies. Whether you're in the middle of a project or in the early planning stages, this discussion will provide practical guidance on:

• Understanding recent shifts in federal and state funding.

• Exploring adaptive design strategies to keep projects on track.

• Identifying alternative funding models.

• Positioning your institution for long-term resilience.

Financial pressures aren't likely to disappear, but learning from peers and staying current with evolving trends can help your institution deliver the research environments that science and society need. Don't miss this opportunity to learn from leaders in the field. Access this free on demand video today!