Brown University implements drastic budget cuts due to federal funding losses

In the United States, Brown University has revealed that it is experiencing significant financial challenges, necessitating further budget cuts. The announcement was made on June 30, 2025, by the university's administration, citing the impact of federal policy changes on its financial stability. This comes shortly after Stanford University announced its own plans to cut $140 million from its operational budget, indicating a troubling trend among major universities in the country.  Brown's leadership outlined that the institution is already grappling with a structural deficit of $46 million and has warned that without operational changes, this figure could exceed $90 million next fiscal year. The administration highlighted that a series of adverse federal actions, including cuts to research funding, have led to these financial woes. The Trump administration's freeze on federal research funding has already cost Brown $45 million, a figure that escalates by approximately $3.5 million weekly. To address these challenges, Brown University has implemented measures such as extending a staff hiring freeze through the summer and maintaining restrictions on non-essential travel. The salaries of the president’s cabinet will remain frozen, with incoming reductions for those higher positions. In addition, further alterations to faculty and staff hiring processes, spending cuts across services and support, and potential reductions in graduate student admissions have been discussed as part of a broader cost-reduction strategy.  The university's administration noted that the financial landscape is further complicated by anticipated tax increases on endowment earnings and potential reductions to federal financial aid programs, which together could lead to millions in losses annually. Given the persistent pressures from federal funding cuts, Brown is actively assessing additional debt options to improve liquidity and is seeking private donations to maintain its research programs. The leadership remains committed to its educational mission while navigating these unprecedented financial challenges.