PHILADELPHIA (KYW Newsradio) — The Trump administration’s cuts have the University of Pennsylvania pulling back on spending. The Ivy League school is freezing some hiring and reviewing its capital spending on new buildings and other projects.
The Trump administration has cut off funding to some research projects already underway. The National Institutes of Health is also slashing indirect funding to universities.
“Changes to federal research funding could significantly reduce our operating budget,” university leaders said in a letter posted online. “These include stop-work orders already issued to Penn, and the proposed NIH cap on indirect costs. Congress is also considering additional proposals that will affect our finances, including reductions in student loan programs and eligibility, and an increase in the excise tax on university endowments.”
Penn has a $22 billion endowment, which provides approximately 20% of its total operating budget, “supporting undergraduate and graduate financial aid, faculty salaries, research, and other critical services.”
The letter continued, “The scope and pace of the possible disruptions we face may make them more severe than those of previous challenges, such as the 2008 financial crisis or the COVID pandemic.”
The university also said it is freezing mid-year staff salary adjustments and asking departments to limit nonessential spending.