These Colleges and Universities Are Cutting Costs Over Federal Funding Freezes
Updated on March 28, 2025
Colleges and universities across the country have frozen hiring, rescinded student offer letters, and cut programs due to federal funding cuts.
Credit: DenisTangneyJr / Getty Images
- The Trump administration has made moves to pause National Institutes of Health research and other federal funding that many colleges and universities rely on.
- Colleges and universities across the country are scrambling to patch the holes in their budgets left by the frozen funds.
- The administration has also threatened to withhold funds from institutions that practice DEI, have allegations of antisemitism, or allow transgender athletes to compete.
On the campaign trail, then-presidential candidate Donald Trump promised the American people he would rein in U.S. colleges and universities and even eliminate the Department of Education (ED).
His first few months in office were a flurry of executive orders, some of which stalled or halted federal funding to colleges and universities.
On Jan. 27, the Office of Management and Budget released a memo outlining a freeze on federal grants. Two days later, the memo was rescinded.
The memo announced the Trump administration’s temporary pause of funding to federal agencies’ grant, loan, and financial assistance programs as it reviewed how federal money was being spent.
A freeze on National Institutes of Health (NIH) funding and grants, for example, would affect medical and science research. NIH funding and grants support research at many colleges and universities across the country. This, along with Trump’s executive orders, caused confusion on U.S. campuses over what research could be pursued.
Additionally, some research projects and grants were cut because their names and titles included words or topics the administration considered to fall under diversity, equity, and inclusion (DEI).
While judges have temporarily blocked some funding freezes, states are suing over other cuts.
This whirlwind of freezing and thawing funding has left higher education confused. Many colleges and universities have lost funding they relied on for research, graduate student support, and staffing departments.
Some colleges and universities face warnings and investigations that could impact the future of their federal funding.
The Department of Education has warned 60 colleges and universities that they might lose funding over claims of antisemitism. Another 52 are being investigated for alleged racial discrimination, part of the Trump administration’s efforts to end DEI practices on campus.
While many schools face uncertainty about the state of their federal funding, it’s important to note that some budget reductions in 2025 may not stem directly from the disappearance of the funds.
Instead, they may result from a precarious higher education ecosystem, low post-pandemic enrollment numbers, and a looming enrollment cliff.
Federal Funding Cancellations
The Trump administration canceled $400 million in federal grants and contracts to Columbia University over allegations of antisemitism. On March 13, the administration sent a letter to Columbia outlining a list of demands the university had to meet to earn back its financial funding. The deadline to meet these demands was March 20, by which time Columbia had acquiesced to most of these demands.
On March 19, the Trump administration announced via X that it was pausing $175 million in federal funding to the University of Pennsylvania for allowing a transgender athlete to participate on the women’s swim team.
Johns Hopkins University suffered an $800 million funding shortfall after cuts to the U.S. Agency for International Development, which provided grants to the school. This resulted in the largest layoff in the university’s history.
The University of Maine briefly lost Department of Agriculture funding over the state not complying with a Trump executive order outlining restrictions for transgender athletes. Funding was reinstated after Maine’s congressional representatives got involved.
The University of Michigan released a statement saying it would take proactive measures to tighten its budget, including reviewing hiring, limiting nonessential expenditures, and reexamining capital spending after the federal government ceased funding its multimillion-dollar research project.
The following list includes U.S. colleges and universities that have attributed budget cuts to federal funding challenges. Schools are categorized by the types of cuts they have made, including hiring freezes, layoffs, and impacts on graduate students.
Impacts on Graduate Students
- Institution type: Public, land-grant
- Location: Ames, Iowa
- Impact: Rescinded graduate student offer letters
The research institution had some programs and departments rescind offer letters to graduate students who had not yet accepted their offers. Iowa State said this was because of budget and funding uncertainty.
- Institution type: Public, land-grant
- Location: San Diego
- Impact: Graduate student funding cuts, potential research cuts
The California university is no longer guaranteeing funding for incoming graduate students and has had to limit research funding due to proposed federal cuts, including cuts to scientific research grants. UC San Diego also faces federal funding being withheld over antisemitism allegations.
- Institution type: Public
- Location: Iowa City, Iowa
- Impact: Graduate student offers rescinded
The University of Iowa emailed some graduate students — including some in the English Department — to let them know that the school would be rescinding some offer letters. The university said the decision was in response to uncertainty around federal research funding.
- Institution type: Public
- Location: Worcester, Massachusetts
- Impact: Rescinded offer letters
The UMass Chan Medical School rescinded some offered spots in its biomedical sciences program in March. The medical school attributed this decision to possible federal funding cuts, including cuts to the NIH.
- Institution type: Public, land-grant
- Location: Madison, Wisconsin
- Impact: Revising graduate students offer letters
Prospective graduate students at UW-Madison have reported having their offer letters revised even after they have accepted admission. The school cited uncertainty about federal funding leading to limited spots at the university. ED is currently investigating UW-Madison over racial bias claims, and funding could be withheld over antisemitism allegations.
Hiring Freezes
- Institution type: Private
- Location: Providence, Rhode Island
- Impact: Hiring freeze
In March, Brown University announced a campuswide hiring freeze. The university attributed this precautionary decision to uncertainty over federal funding. Brown is currently under investigation over antisemitism allegations and faces federal funding cuts.
- Institution type: Private
- Location: Durham, North Carolina
- Impact: Hiring freeze, budget cuts
The research university announced in March that it would enact a hiring freeze and other cost-saving measures. Duke’s budget cuts include freezing staff hiring, suspending capital spending, and reviewing administrative operations. ED is currently investigating Duke for allegations of racial bias.
- Institution type: Private
- Location: Atlanta
- Impact: Hiring freeze, budget cuts
Emory President Gregory L. Fenves announced to staff that the research university would enact a hiring freeze and reduce operating expenditures due to changes in federal policies. ED is investigating Emory for allegations of racial bias.
- Institution type: Private
- Location: Cambridge, Massachusetts
- Impact: Hiring freeze
The Ivy League university announced a temporary hiring freeze March 10 due to financial uncertainties driven by federal policies. The university also announced that it will scrutinize discretionary and nonsalary spending, reassess capital renewal projects, and review any new multi-year commitments. Harvard is currently at risk of losing federal funding over allegations of antisemitism.
- Institution type: Private
- Location: Cambridge, Massachusetts
- Impact: Hiring freeze
MIT announced a hiring freeze in February due to uncertainty over federal funding. Faculty positions were not included in this freeze. MIT is currently being investigated by ED over allegations of racial bias.
- Institution type: Private
- Location: Notre Dame, Indiana
- Impact: Hiring freeze
The private university announced a hiring freeze for non-teaching staff in early March. The institution said this freeze was due to the cancellation of federal grants and other financial assistance from the NIH. Notre Dame is currently under ED investigation over racial bias allegations.
- Institution type: Public, land-grant
- Location: College Park, Maryland
- Impact: Partial hiring freeze
The research university announced in late March that it would implement a partial hiring freeze and new guidelines on hiring. Hiring to fill existing, funded positions requires additional review, and hiring for any new positions is paused. University administrators told faculty and staff this was due to uncertainty around federal funding.
- Institution type: Private
- Location: Los Angeles
- Impact: Hiring freeze, budget reductions
In late March the university announced that it would be reducing its budget, freezing staff hiring, curtailing faculty hiring, slowing down on capital spending, and ending the extended winter recess.
The university said the following about its decision: “As you are aware, colleges and universities across the nation are facing tremendous scrutiny and financial stress due to federal funding uncertainty, cuts, increased costs, and other risks. Like other major research institutions, USC relies on significant amounts of federal funding to carry out our mission.
“In fiscal year 2024, for example, we received approximately $1.35 billion in federal funding, including roughly $650 million in student financial aid and $569 million for federally funded research. The health system also receives Medicare, Medicaid, and Medi-Cal payments — a significant portion of its revenues — and the futures of those funds are similarly uncertain.”
- Institution type: Private
- Location: Stanford, California
- Impact: Hiring freeze
The research university announced a hiring freeze due to the cuts to the NIH. The scale of these cuts led to uncertainties over the school’s budget since Stanford receives funding from the NIH. Faculty, contingent, and student employees were excluded from this freeze. Stanford also faces threats to its federal funding over allegations of antisemitism.
- Institution type: Public
- Location: New York
- Impact: Research cuts, budget cuts, hiring freeze
New York’s university systems are under a hiring freeze as the funding for research and programs has been called into question due to federal funding cuts, including to the NIH. SUNY Binghamton, Rockland, and Purchase could have federal funding withheld over allegations of antisemitism.
- Institution type: Public
- Location: California
- Impact: Hiring freeze
On March 19, University of California President Michael V. Drake, M.D., directed all UC locations, including the Office of the President, to implement a staff hiring freeze and cost-saving measures such as limiting travel and business expenses. He cited Trump administration policies as the reason. Some UC schools could have federal funding withheld over allegations of antisemitism. The University of California, Berkeley had its federal funding threatened over allegations of racial bias in DEI practices.
- Institution type: Public, land-grant
- Location: Lincoln, Nebraska
- Impact: Budget cuts, hiring freeze
The university announced it would cut its budget by about $5 million and continue its existing hiring freeze. The university said this was due to uncertainty around state and federal funding and said more cuts may be necessary. The university has been battling budget shortfalls for several years after years of stagnant enrollment growth.
- Institution type: Private
- Location: Philadelphia
- Impact: Budget cuts, hiring freeze
The Pennsylvania Ivy League school implemented a hiring freeze and capital spending review due to the uncertainty of federal funding cuts the day after the Trump administration suspended $175 million in federal funds.
- Institution type: Public, land-grant
- Location: Burlington, Vermont
- Impact: Hiring freeze
The research university announced a temporary hiring freeze in March. The university said in a memo about the decision: “With multiple federal funding sources for university operations facing proposed reduction or alteration and the outcomes of several federal actions uncertain, the university will pause general hiring for all long-term faculty, staff, and postdoctoral positions, effective immediately and extending for 60 days.”
- Institution type: Public
- Location: Seattle
- Impact: Hiring freeze
The University of Washington implemented a hiring freeze for all nonessential faculty and staff. UW said this was due to federal policy changes and the risk of federal funding cuts. Washington state is also facing a higher education budget shortfall. The University of Washington-Seattle could have federal funding withheld over allegations of antisemitism. It’s also under ED investigation over allegations of racial bias.
Layoffs
- Institution type: Public, tribal, land-grant
- Location: Lawrence, Kansas
- Impact: Layoffs, budget cuts
The university experienced vast budget cuts and mass layoffs as a result of the nationwide layoffs of federal employees. Roughly one-third of the university’s employees were laid off, which prompted protests by students, staff, and faculty.
- Institution type: Private
- Location: Baltimore
- Impact: Layoffs
The research university announced in March that it would lay off 2,200 workers due to funding cuts. The university said this was the largest layoff in its history. Johns Hopkins is also under threat of having federal funds withheld over antisemitism allegations.
- Institution type: Public, two-year
- Location: Albuquerque, New Mexico
- Impact: Layoffs
Southwestern Indian Polytechnic Institute lost about 20% of its staff back in February, when the federal government downsized its workforce.
