University System of Maryland authorizes furloughs, salary cuts amid funding shortfall
The University System of Maryland's Board of Regents voted Monday to authorize potential furloughs and temporary salary reductions for university employees as the system grapples with significant funding cuts, according to the Baltimore Banner.
Monday's vote doesn't mandate that all 12 universities in the system implement these measures but allows them to pursue these options while facing a 7% state budget cut and the loss of millions in federal grants.
Maryland universities face reductions in federal funding
Maryland has cut over $150 million in funding to the state's public university system, and the Trump administration has also canceled hundreds of millions of dollars in federal grants to Maryland institutions.
Just last week, the University of Maryland, Baltimore said it was laying off employees and eliminating some vacant positions.
UMB said "Modest salary reductions" would affect about 1,000 employees, including university leadership, primarily at the medical school.
More than 40 research grants and contracts, totaling about $12 million, were canceled due to federal funding cuts, specifically attributed to the Trump administration's effort to eliminate diversity, equity, and inclusion (DEI) programs.
Johns Hopkins University (JHU) reported it would lay off 2,200 workers following a loss of funding from USAID and new caps on indirect research costs by the National Institutes of Health (NIH).
In April, JHU said it would use endowment earnings to offset some of the impact from major federal research funding cuts
What does the Board of Regents' vote mean?
The vote allows institutional closures to help save money, but schools must continue with "essential services," like class schedules, critical student services and, in relevant cases, patient care, according to the Baltimore Banner.
Plans to furlough employees or reduce salaries "may allow for exclusion of certain individuals," according to the document, though no further specifics were included.
Any temporary salary reductions must be reversed by June 30, 2026.
