Stanford announced Wednesday (Feb. 26) that it’s freezing hiring in anticipation of funding cuts by the federal government.
The announcement comes a day after Stanford dropped plans to purchase Notre Dame de Namur University’s campus in Belmont.
The National Institutes of Health is trying to dramatically reduce payments to universities for indirect costs associated with research, President Jonathan Levin and Provost Jenny Martinez said in a statement.
“Though this is currently under review by the courts, a cut of this magnitude would have a significant negative budget impact at Stanford,” Levin and Martinez said in a statement.
Congress has also proposed expanding an endowment tax paid by universities, including Stanford.
The annual payout from Stanford’s $43 billion endowment is a crucial part of the budget, Levin and Martinez said.
The endowment supports roughly two-thirds of the budget for financial aid and a significant portion of faculty salaries, research and key programs like libraries and student services.
“Taken together, these are very significant risks to the university,” Levin and Martinez said.
The freeze doesn’t apply to faculty positions, temporary employees or student workers.
Critically needed positions can still be appointed by deans, and hiring for positions that are fully funded by outside research groups can continue, they said.
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