Austerity measures are sweeping across American universities as federal research funding is slashed. Prestigious institutions such as Harvard, Columbia, Princeton, and Michigan State have begun cutting budgets, laying off staff, and removing non-essential services in response to funding changes from the administration of US President Donald Trump, according to a report by The Times of India.
The Trump administration has withdrawn billions in research grants, citing concerns about antisemitism and the role of diversity, equity, and inclusion (DEI) initiatives on campuses. A recent executive order also targets foreign donations to universities, while Republican lawmakers are working to increase taxes on university endowments. As per the TOI report,
“We’re going to have to really rethink higher education and how we’re funded,” said Ruth Johnston of the National Association of College and University Business Officers.
Harvard cuts back amid legal fight
Harvard University is currently involved in a legal battle to restore its lost federal funding. President Alan Garber has taken a 25% pay cut, and Dean Hopi Hoekstra has formed emergency groups to support essential research. The TH Chan School of Public Health, which depended on federal grants for nearly half of its budget, has been forced to implement layoffs and reduce admissions.
“These federal actions have set in motion changes that will not be undone, at least not in the foreseeable future,” Hoekstra told faculty. Garber has committed $250 million from internal reserves as a temporary solution.
Columbia University faces the impact
Columbia University has lost over 300 federal research grants. In response, the institution has laid off 180 staff members connected to these programs, making up 20% of affected personnel. Some research has been paused, while others are relying on limited internal funds to continue.
“We are working on and planning for every eventuality, but the strain in the meantime, financially and on our research mission, is intense,” acting President Claire Shipman and senior leaders wrote to faculty. The university has frozen salary increases and introduced a voluntary retirement plan.
Budget reductions at Princeton and Michigan state
Princeton University has asked departments to prepare for a 5–10% budget cut over the next three years. Officials attribute this to “very large, permanent cuts to federal research funding” and rising taxes on endowments. Some federal grants have already been suspended.
At Michigan State, President Kevin Guskiewicz said the university will “adjust our financial path,” noting that changes will aim to bring savings in the short, medium, and long term.
Many people note that elite and liberal-leaning universities appear to be facing the brunt of these policy shifts. Robert Kelchen, a professor at the University of Tennessee, suggested that schools in conservative states may also be under pressure but are responding differently. “Being transparent is a good political move in blue states,” he said. “But don’t assume they’re alone.”
While undergraduate education has not been widely affected so far, the reduction in faculty and research investment may soon become visible. Since the National Institutes of Health announced new funding limits in March, hiring freezes have become more common. Layoffs are gradually increasing.
Initial cost-saving actions include delaying construction, cutting staff perks, and merging academic departments. But education experts expect deeper adjustments ahead.
(With inputs from TOI)
The Trump administration has withdrawn billions in research grants, citing concerns about antisemitism and the role of diversity, equity, and inclusion (DEI) initiatives on campuses. A recent executive order also targets foreign donations to universities, while Republican lawmakers are working to increase taxes on university endowments. As per the TOI report,
“We’re going to have to really rethink higher education and how we’re funded,” said Ruth Johnston of the National Association of College and University Business Officers.
Harvard cuts back amid legal fight
Harvard University is currently involved in a legal battle to restore its lost federal funding. President Alan Garber has taken a 25% pay cut, and Dean Hopi Hoekstra has formed emergency groups to support essential research. The TH Chan School of Public Health, which depended on federal grants for nearly half of its budget, has been forced to implement layoffs and reduce admissions.
“These federal actions have set in motion changes that will not be undone, at least not in the foreseeable future,” Hoekstra told faculty. Garber has committed $250 million from internal reserves as a temporary solution.
Columbia University faces the impact
Columbia University has lost over 300 federal research grants. In response, the institution has laid off 180 staff members connected to these programs, making up 20% of affected personnel. Some research has been paused, while others are relying on limited internal funds to continue.
“We are working on and planning for every eventuality, but the strain in the meantime, financially and on our research mission, is intense,” acting President Claire Shipman and senior leaders wrote to faculty. The university has frozen salary increases and introduced a voluntary retirement plan.
Budget reductions at Princeton and Michigan state
Princeton University has asked departments to prepare for a 5–10% budget cut over the next three years. Officials attribute this to “very large, permanent cuts to federal research funding” and rising taxes on endowments. Some federal grants have already been suspended.
At Michigan State, President Kevin Guskiewicz said the university will “adjust our financial path,” noting that changes will aim to bring savings in the short, medium, and long term.
Many people note that elite and liberal-leaning universities appear to be facing the brunt of these policy shifts. Robert Kelchen, a professor at the University of Tennessee, suggested that schools in conservative states may also be under pressure but are responding differently. “Being transparent is a good political move in blue states,” he said. “But don’t assume they’re alone.”
While undergraduate education has not been widely affected so far, the reduction in faculty and research investment may soon become visible. Since the National Institutes of Health announced new funding limits in March, hiring freezes have become more common. Layoffs are gradually increasing.
Initial cost-saving actions include delaying construction, cutting staff perks, and merging academic departments. But education experts expect deeper adjustments ahead.
(With inputs from TOI)
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