News Summary

Brown University is dealing with a severe financial crisis, losing $45 million in NIH grants that comprise 70% of its federal research support. The university has extended its staff hiring freeze and has initiated cost-cutting measures, including limiting PhD admissions and reducing operating expenses. With additional financial pressures from potential changes in federal financial programs, Brown University is actively seeking new funding sources and has filed lawsuits to challenge the funding cuts. The financial outlook is uncertain as the university navigates these challenges.

Providence – Brown University Faces Major Financial Crisis Due to Federal Funding Cuts, Losing $45 Million in NIH Grants

Brown University is grappling with a serious financial crisis as it has lost $45 million in funding from the National Institutes of Health (NIH), which halted payments on existing grants effective April 3. This funding constitutes 70% of the University’s federal research support, and the loss is rising by approximately $3.5 million each week.

In response to the ongoing financial difficulties, the University announced an extension of its staff hiring freeze, which will continue until at least the end of summer. The hiring freeze follows a series of budgetary strategies aimed at addressing a significant deficit that previously reached $46 million before President Trump’s administration.

University officials have outlined plans to manage these financial challenges, which include reducing the growth of faculty and staff, limiting PhD admissions, and cutting operating expenses. To further bolster its finances, Brown University has filed lawsuits against various federal agencies due to the research funding cuts.

In an effort to navigate these hurdles, the University has secured a $300 million loan and established the Research Resilience Fund to bridge the gaps in research funding. Faculty members have also been provided with “substantial bridging funds” to support their ongoing work while the University seeks to resolve the NIH funding situation.

This funding crisis comes at a time when the University is already facing additional financial pressures. Proposed changes to Pell Grants and other federal financial programs could result in an estimated $8.8 million loss for the University. Additionally, potential threats to international student enrollment could have financial ramifications worth tens of millions of dollars.

While the NIH instructed staff in mid-April to freeze funds to Brown and four other institutions, it clarified that no research projects have been canceled as of a memo dated June 24. The funding currently lost from NIH is significantly above the University’s budget for salary increases and is three times the amount allocated for student financial aid in the upcoming year.

Cost-cutting measures are expected to be communicated later this summer, including adjustments to faculty hiring and reductions in spending on services and support. Previously implemented strategies have included freezes on salary increases for the President’s Cabinet and senior leadership.

Brown University is actively engaged in various government reviews to ensure compliance with laws related to discrimination and admissions practices while striving to maintain academic freedom.

In light of the severe budget shortfall, University officials are consulting with faculty and staff to determine essential funding areas and possible cost-cutting measures. The institution is also collaborating with other universities for joint advocacy against funding cuts and has participated in legal actions aimed at halting these reductions.

Looking ahead, Brown anticipates a range of scenarios, including the potential use of debt backed by the endowment and the identification of non-federal funding sources for research. With the campus leadership evaluating these strategies, the financial future of Brown University remains uncertain in these challenging times.

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Additional Resources

• Higher Ed Dive: Brown University Cost-Cutting
• GoLocalProv: Threatened Finances
• Providence Business News: NIH Funding Loss
• Wikipedia: National Institutes of Health
• Encyclopedia Britannica: University