Brown University Faces Major Financial Challenges Amid NIH Funding Loss

Providence, Rhode Island — Brown University is facing a significant financial shortfall following a loss of $45 million in funding from the National Institutes of Health (NIH) since April 3. This substantial decline in federal research funding stems from a series of federal actions, which have included the termination of key research grants and a freeze on NIH funds to the university. Currently, NIH funding constitutes approximately 70% of Brown’s federal research budget.

Brown’s leadership team, including President Christina H. Paxson, Provost Francis J. Doyle III, and Vice President for Finance and Administration Sarah Latham, is navigating these challenges with urgency. They have indicated that the cost savings measures implemented thus far have proven inadequate to offset the deepening financial crisis, projecting that the university’s deficit could increase to over $90 million in the coming year.

As a countermeasure to the ongoing funding challenges, Brown has decided to extend its staff hiring freeze until at least the end of the summer and has announced a continuation of its freeze on non-essential travel through September. Additionally, a salary freeze will remain in effect for members of the president’s cabinet through fiscal year 2026, with senior leadership members accepting a 10% cut in their salaries.

In terms of further cost-saving strategies, Brown plans to unveil additional measures during the summer months, which may encompass recalibrations in faculty hiring levels, spending reductions, and potential changes to graduate student admissions structures.

Since the onset of funding losses from April 3 to the present, the university has experienced an increment of approximately $3.5 million in funding shortfalls each week. In response to these challenges, Brown has secured a $300 million term loan to bolster its liquidity.

Amidst these financial pressures, Brown has also established the Research Resilience Fund aimed at addressing the gaps in research funding resulting from NIH cutbacks. Despite this, the NIH has not awarded any new grants to the university nor has it processed any regular annual grant renewals.

Brown’s officials are also pursuing legal recourse, having filed several lawsuits against federal agencies in response to the termination of research grants and resultant funding cuts. Additionally, proposed alterations to federal financial aid programs could bring an anticipated loss of approximately $8.8 million for the university’s budget. Congressional actions that might threaten international student enrollment could further strain the university’s finances, potentially resulting in losses of “tens of millions.”

Despite recent challenges, some court rulings have been favorable to Brown and other institutions, blocking certain cuts to NIH grant funding, particularly concerning health equity and other related subjects. However, Brown’s leadership has publicly acknowledged the persistent threats to the university’s financial sustainability and its mission to provide education and research opportunities amidst such adversities.

As Brown University rallies to counter the mounting financial burdens, it continues to focus on strategic and effective measures aimed at ensuring its economic health while safeguarding its academic commitments.