Stanford University announces hiring freeze amid concerns about federal funding cuts
Officials at Stanford University announced a freeze on staff hiring, citing concerns about the Trump administration's plans to cut funding for scientific research.
In a statement Wednesday, university president Jonathan Levin and provost Jenny Martinez said they are announcing the freeze as they are planning the budget for the upcoming 2025-26 academic year.
"Given the uncertainty, we need to take prudent steps to limit spending and ensure that we have flexibility and resilience," they said.
Levin and Martinez cited the administration ordering the National Institutes of Health to implement steep cuts on how medical research grants are funded. In response, California and 21 other states have sued to stop the change.
"Though this is currently under review by the courts, a cut of this magnitude would have a significant negative budget impact at Stanford. There is also uncertainty about the level of direct federal funding for scientific research as agencies like NIH and NSF face cuts," they said.
Along with cuts to federal funding, the leaders cited proposals in Congress to increase taxes on college endowments. Rep. Troy Nehls (R-Texas) has introduced a proposal that would raise the tax on certain endowments at private universities from 1.4% to 21%.
"This too would negatively affect Stanford's finances, because the annual payout from the endowment forms a crucial part of our yearly budget," they said.
The leaders said the endowment supports roughly two-thirds of the budget for undergraduate and graduate financial aid, along with a "significant portion" of faculty salaries, research and other programs such as libraries and student services.
In 2023, Stanford had the 4th largest university endowment, behind Harvard, Yale and the University of Texas system. As of Aug. 31, 2024, the school's endowment was valued at $37.6 billion.
The hiring freeze impacts staff hiring, but the university president and provost noted that limited hiring can take place with approval by a dean, vice president or vice provost.
Officials said the freeze does not apply for faculty positions, temporary and casual employees and student workers.