Since the Trump administration slashed federal research funding , prestigious American universities, including Harvard and Columbia, are grappling with unprecedented austerity measures. The cuts, designed to limit federal involvement in research programs, have forced many of these institutions to make tough financial decisions. Layoffs, budget reductions, and the suspension of research programs are now widespread across top schools, with some fearing a permanent shift in how higher education is funded in the US
The reduction in funding has prompted universities to rethink their financial strategies, putting significant strain on research initiatives and academic programs that once thrived under federal support. The ramifications are already evident at some of the most well-known campuses, with institutions like Harvard, Columbia, Princeton, and Michigan State feeling the brunt of the changes.
Ivy league institutions feel the pinch
Harvard University, one of the largest recipients of federal research funding, is among the most impacted by these changes. As of May 2025, the university is embroiled in a legal battle to restore the lost grants. Harvard President Alan Garber has already taken a 25% pay cut, while Dean Hopi Hoekstra has been tasked with creating emergency teams to support essential research programs. The TH Chan School of Public Health, which relied on federal funding for nearly half its budget, has had to lay off staff and reduce admissions. Hoekstra explained that these cuts are “set in motion” and cannot be undone soon.
Columbia University is facing similar challenges. The school has lost over 300 federal research grants, leading to the layoff of 180 employees in related departments, amounting to 20% of those affected. To cope, Columbia has frozen salary increases and introduced a voluntary retirement plan. In a letter to faculty, acting President Claire Shipman described the financial strain, saying, “The stress on our research mission is intense, and we are planning for every eventuality.”
Federal funding cuts transform higher education landscape
In addition to these high-profile cases, universities across the US are also confronting the broader consequences of the Trump administration’s policies. Princeton University has announced plans to reduce its budget by 5–10% over the next three years, directly linked to “permanent cuts” in federal research funding. Meanwhile, Michigan State University is working to adjust its financial path, with President Kevin Guskiewicz noting that both short- and long-term savings are necessary to weather the storm.
As the cuts continue, faculty hiring freezes are becoming more common, and layoffs are gradually increasing. The National Institutes of Health (NIH) announced new funding limits in March 2025, exacerbating the situation. As a result, many universities are delaying construction projects, cutting staff perks, and even merging academic departments in a bid to save costs.
While these changes are most visible at elite, liberal-leaning institutions, experts warn that universities in conservative states will also feel the pressure, although they may respond differently. According to Robert Kelchen, a professor at the University of Tennessee, these financial pressures will have a lasting impact on how American higher education functions.
The reduction in funding has prompted universities to rethink their financial strategies, putting significant strain on research initiatives and academic programs that once thrived under federal support. The ramifications are already evident at some of the most well-known campuses, with institutions like Harvard, Columbia, Princeton, and Michigan State feeling the brunt of the changes.
Ivy league institutions feel the pinch
Harvard University, one of the largest recipients of federal research funding, is among the most impacted by these changes. As of May 2025, the university is embroiled in a legal battle to restore the lost grants. Harvard President Alan Garber has already taken a 25% pay cut, while Dean Hopi Hoekstra has been tasked with creating emergency teams to support essential research programs. The TH Chan School of Public Health, which relied on federal funding for nearly half its budget, has had to lay off staff and reduce admissions. Hoekstra explained that these cuts are “set in motion” and cannot be undone soon.
Columbia University is facing similar challenges. The school has lost over 300 federal research grants, leading to the layoff of 180 employees in related departments, amounting to 20% of those affected. To cope, Columbia has frozen salary increases and introduced a voluntary retirement plan. In a letter to faculty, acting President Claire Shipman described the financial strain, saying, “The stress on our research mission is intense, and we are planning for every eventuality.”
Federal funding cuts transform higher education landscape
In addition to these high-profile cases, universities across the US are also confronting the broader consequences of the Trump administration’s policies. Princeton University has announced plans to reduce its budget by 5–10% over the next three years, directly linked to “permanent cuts” in federal research funding. Meanwhile, Michigan State University is working to adjust its financial path, with President Kevin Guskiewicz noting that both short- and long-term savings are necessary to weather the storm.
As the cuts continue, faculty hiring freezes are becoming more common, and layoffs are gradually increasing. The National Institutes of Health (NIH) announced new funding limits in March 2025, exacerbating the situation. As a result, many universities are delaying construction projects, cutting staff perks, and even merging academic departments in a bid to save costs.
While these changes are most visible at elite, liberal-leaning institutions, experts warn that universities in conservative states will also feel the pressure, although they may respond differently. According to Robert Kelchen, a professor at the University of Tennessee, these financial pressures will have a lasting impact on how American higher education functions.
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