Universities across America are tightening their financial belts amid political developments that could significantly affect their funding. Officials at various higher education institutions have announced hiring freezes, along with some layoffs, as the Trump administration considers significant reductions in federal contracts and research grants.
Johns Hopkins University recently disclosed plans to cut more than 2,200 jobs, a move driven by a decrease in funding from USAID. While some of these positions are based in Baltimore, the majority are situated in 44 other countries, supporting the university’s esteemed Bloomberg School of Public Health, its medical school, and an associated nonprofit organization.
Earlier this year, the Trump administration unveiled plans for substantial cuts to National Institutes of Health (NIH) grants, which are pivotal for many research institutions. This directive has the potential to significantly cut funding to some universities by over $100 million. Although these cuts have been temporarily halted by a court challenge, several schools have already postponed projects in anticipation of financial constraints.
President Donald Trump has recently expressed a desire to scrutinize college funding more directly. His administration has threatened to withhold federal funds from colleges that do not align with his stance on various issues, including diversity and inclusion programs, participation of transgender athletes in women’s sports, and student protests deemed unlawful.
In early March, the administration withdrew $400 million from Columbia University, criticizing the institution for not adequately addressing antisemitism on campus. This action was followed by a warning from the Education Department to 60 colleges, stating that they risk losing federal support if they fail to ensure safe environments for Jewish students.
Despite a post-pandemic surge in job creation within higher education, with private colleges and universities adding 35,000 jobs last year, hiring freezes and cuts are now raising concerns about slower job growth in the near future. Both private and public colleges are implementing measures to curb expenditures.
Over the past two weeks, more than a dozen institutions, including Harvard, MIT, Notre Dame, and the University of California, San Diego, have instituted faculty and staff hiring limitations. Harvard noted that this move aims to safeguard financial flexibility amidst changing federal policies.
Tricia Serio, the University of Washington’s provost, acknowledged the prevalent uncertainty but emphasized the importance of strategic resource management to prepare for possible financial disruptions.
Meanwhile, Emory University President Gregory Fenves signaled a readiness to make judicious fiscal decisions in anticipation of a potential significant financial disturbance.
Colleges had initially been wary of policy shifts like increased taxes on university endowments, but recent actions have exacerbated anxieties. Delays in funding approvals, due to reduced NIH grants and cuts to programs focused on diversity, equity, and inclusion, have further compounded these concerns.
A recent fracas involving Trump and Maine’s governor regarding transgender athletes led to a temporary suspension of research funding from the U.S. Department of Agriculture at the University of Maine, though this funding was eventually restored.
The loss of $400 million in federal funding for Columbia University sent shockwaves through the academic community. Ted Mitchell, president of the American Council of Education, criticized the federal approach, warning that it could decimate Columbia’s academic and research efforts and potentially lead to misguided targeting of other research institutions.
On Thursday, federal officials called for talks with leaders in major cities like New York, Los Angeles, Chicago, and Boston to address instances where colleges might have failed in protecting Jewish students against discrimination.