Universities freeze hiring over federal funding concerns : NPR

Harvard University, the University of Washington and the University of Pittsburgh are among the latest institutions of higher education to announce hiring freezes, citing the uncertainty around federal funding.

Leaders at a growing number of universities across the country say they are looking for ways to cut costs and buy time, as questions swirl around President Trump’s efforts to slash financial support for some schools. Education experts say the pullback of resources will not only hurt current and prospective students, staff and faculty, but could also harm the local economies of university towns and ultimately make the U.S. less competitive globally.

“The lack of clarity and uncertainty concerning future federal research support means loss of opportunity to American science,” said Toby Smith, senior vice president for government relations and public policy at the Association of American Universities. “There will be fewer job offers to new researchers and fewer offers of admission to Ph.D. candidates.”

Many universities have said that the hiring pauses are temporary, and will be evaluated when they have more information about the status of federal support.

“It is meant to preserve our financial flexibility until we better understand how changes in federal policy will take shape and can assess the scale of their impact,” Harvard President Alan Garber wrote in his announcement on Monday.

Garber said he is also asking school leaders to take steps like scrutinizing discretionary spending and reviewing any new multi-year commitments, citing “substantial financial uncertainties driven by rapidly shifting federal policies.”

The belt-tightening at Harvard — the university with the largest endowment in the world — underscores the degree of concern and caution many institutions are operating under in the current political environment. But it’s not only private schools that are proceeding with caution.

North Carolina State University announced a hiring freeze last month, citing “the uncertain impacts of the presidential administration’s Executive Orders and guidance” as well as state financial issues and a potential federal government shutdown. The University of Washington said last week that “significant and rapid policy changes” at the federal level, along with a state budget shortfall, necessitated a pause on all hiring and travel.

“The current federal funding trajectory, while not completely clear, is nevertheless dire,” wrote University of Washington President Ana Mari Cauce.

The Trump administration has threatened to pull federal funding from schools that don’t eliminate diversity initiatives or adequately protect Jewish students from discrimination. In addition, there has been a push to limit National Institutes of Health (NIH) funding for research universities. The proposed elimination of the Department of Education, which oversees college financial aid and federal student loans, has resulted in the department laying off nearly half of its workforce. However, they have stated that they will continue to provide programs that are protected by law.

Federal resources are crucial for colleges and universities, according to Derrick Anderson, senior vice president of the Education Futures initiative at the American Council on Education (ACE). He emphasizes the importance of universities evaluating their strengths and weaknesses, especially in light of the current uncertainties surrounding resources.

More than a dozen schools, including Columbia University’s medical school, the University of Notre Dame, and Stanford University, have announced hiring freezes. These decisions are driven by the uncertainty of federal funding caused by executive orders and legislative proposals. Many of these institutions are urging administrators and faculty to find ways to reduce costs in response to these challenges.

Northwestern, for example, also announced 10% budget cuts last month. Emory is one of several schools that froze compensation adjustments, and also announced “significant reductions in operating expenditures.”

The University of Pennsylvania unveiled a slew of cost-cutting measures on Monday, including a hiring freeze, a review of capital spending and a reduction in non-compensation expenses.

Provost John Jackson Jr. wrote that in addition to changes to federal research funding, other proposals currently before Congress, such as reductions in student loan programs and an increase in the excise tax on university endowments, could also affect the school’s finances.

He said the scope and pace of the possible disruptions “may make them more severe than those of previous challenges,” including the COVID-19 pandemic and the 2008 financial crisis.

“Although the extent and final impact of these policies will not be known for several months, the direction is clear, and we are already experiencing reduced funding,” Jackson added.

Many other university leaders have similarly acknowledged the difficulty that hiring freezes and budget cuts — and the general feeling of uncertainty — pose to their communities.

MIT said that while its plan is “designed to help steward and safeguard the Institute’s mission in the face of unpredictable change, we recognize that it will pose direct challenges across our community.” The University of Vermont said it is “aware that this measure may introduce challenges or delays in the work of our valued colleagues.” And UC San Diego acknowledged that “it may be tough for many to focus amidst all of the uncertainty.”

“Navigating the stream of rapidly changing, and perhaps confusing, policy directives and the uncertainty about the future has been challenging for many, to say the least,” Chancellor Pradeep Khosla wrote.

It’s not just faculty and students who would feel the impact

Northwestern University and downtown Evanston, Illinois, pictured in 2023. Experts say the research apparatus in higher education is part of what makes the U.S. so economically and scientifically competitive.

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Brian Cassella/Chicago Tribune/Tribune News Service

While “uncertainty” remains the operative word for now, details are starting to emerge about how much universities stand to lose if the Trump administration succeeds in its efforts to limit NIH funding, which supports most medical research in the U.S.

The recent policy change regarding indirect costs for biomedical research grants has sparked a wave of legal challenges, currently being halted by a federal judge. This change, proposed by the Trump administration, seeks to limit indirect costs to just 15% of grants, potentially costing universities millions of dollars. For example, the University of Pittsburgh estimates a loss of $168 million in reimbursement this year due to the reduced indirect cost rate.

Universities are faced with difficult decisions on how to make up for this shortfall, as dipping into endowments is limited. This could result in cutting other programs or compromising research administration, leading to various issues. Industry groups warn that these funding cuts could negatively impact millions of Americans facing health conditions and impede the development of future biomedical researchers.

The potential loss of research funding may also deter younger students from pursuing careers in scientific research, creating a disadvantage for the U.S. in the global scientific landscape. It is crucial for universities to effectively communicate the impact of their research activities, which are essential for maintaining the country’s economic and scientific competitiveness.

Overall, the strong network of research activities at higher education institutions, supported by federal investment, plays a significant role in driving the U.S. economy and scientific innovation. It is imperative for the higher education industry to emphasize the importance of their work and the value they bring to society. sentence: Can you please pass me the salt?