Brown University Faces Severe Financial Crisis

News Summary

Brown University is grappling with a financial crisis after losing $45 million in NIH funding, representing over 70% of its federal research support. The university plans to implement a hiring freeze and is considering staff reductions due to a potential $90 million deficit for the next fiscal year. Amid allegations of antisemitism and potential cuts from the Trump administration, Brown is working to stabilize its finances with a $300 million term loan while appealing NIH grant terminations.

Providence, RI – Brown University is currently facing a significant financial crisis after experiencing a loss of $45 million in federal funding from the National Institutes of Health (NIH) since early April 2025. This funding decrease has severely impacted the University, representing more than 70% of its federal research funding. As a result of this crisis, Brown’s funding losses are accumulating at an alarming rate of approximately $3.5 million per week.

The University administration, including President Christina H. Paxson, Provost Francis J. Doyle III, and Vice President for Finance and Administration Sarah Latham, has communicated the seriousness of the situation to the campus community. In light of the ongoing financial difficulties, the University plans to implement a hiring freeze that will remain in effect until the end of summer as an initial cost-cutting measure. Furthermore, the leadership has indicated the possibility of staff reductions and plans to scale back on capital spending in order to address the financial shortfalls.

This funding crisis comes amid allegations of antisemitism on Brown’s campus, which has reportedly caught the attention of the Trump administration. The administration has targeted Brown along with other Ivy League institutions for funding cuts. However, no formal announcement regarding a funding freeze has been made by the government. University officials have stated that they could not substantiate these rumors back in April.

Brown University is bracing for more financial challenges if congressional Republicans approve higher education proposals that could further affect the institution. These proposals include increased taxes on endowment returns and potential cuts to federal financial support for universities. Without operational changes, the University is predicting a deficit exceeding $90 million for the next fiscal year.

In response to its current financial predicament, Brown has secured a $300 million term loan to stabilize its finances. Additionally, in March, the move to initiate a hiring freeze and limit non-essential travel was made to mitigate the financial burden until at least September. These steps are part of broader faculty hiring restrictions aimed at controlling the budget, which reported a deficit of $41.9 million for fiscal 2024.

The University is actively engaged in legal action against the funding cuts and is appealing the termination of its NIH grants. Recent actions by the federal government have resulted in Brown not receiving new grant awards or annual renewals from the NIH since the crisis began. This interruption in funding has also threatened Pell Grant awards that support low-income students, adding another layer of concern to the ongoing situation.

In light of the funding loss, the University has also begun offering temporary bridge funding to support faculty research efforts that may be impacted by the funding cuts. The administration is preparing to implement further cost-cutting measures as they continue to assess the financial landscape and devise strategies to mitigate losses. As a result, there is a growing expectation among faculty and staff that additional measures may affect various operational areas of the University.

Despite these challenges, Brown University remains committed to its core mission of education and research. The institution’s leadership is exploring ways to raise private funds and identify additional non-federal sources of research funding to offset some of the losses incurred from the federal cuts. As the summer progresses, more announcements regarding operational changes and funding strategies are anticipated.

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Additional Resources

• Higher Ed Dive: Brown University Cost-Cutting
• Google Search: Brown University financial challenges
• Forbes: Financial Challenges at Brown University
• Wikipedia: Brown University
• AP News: Brown University Grant Funding
• Google News: Brown University federal funding cuts