Brown University has instituted a temporary staff hiring freeze among a set of cost-saving measures deployed to harden the Ivy League school’s finances amid a structural deficit and fiscal uncertainty nationwide.
A salary freeze for the president’s cabinet, a voluntary freeze for other top administrators and cuts to discretionary spending were also cited among the actions announced Thursday.
A statement by University Provost Francis J. Doyle III and Executive Vice President Sarah Latham detailed how the school plans to deal with a projected $46 million deficit for fiscal 2025, according to a press release from December. The changes are effective immediately, Doyle and Latham wrote.
Brown’s maneuver follows similar financial footwork at other Ivy League schools, like Yale University, Harvard University and the University of Pennsylvania, all of which have announced cost-saving measures like hiring freezes to counteract less federal funding and the potential for increased endowment taxes under President Donald Trump’s administration.
“This work has become increasingly urgent as we continue these budget efforts against the current backdrop of increased financial uncertainty owing to the evolving federal landscape,” Doyle and Latham wrote.
Brown spends the most money on employee compensation, and by exerting greater control over hiring and non-employee expenses, the school hopes it can “preserve as many current jobs as possible,” Doyle and Latham wrote.
President Christina Paxson, as well as Doyle and Latham, will be taking a 10% salary cut in fiscal year 2026. President’s cabinet members will not be eligible for either wage or performance-based raises in the upcoming fiscal year, and “other highly compensated administrators, who are not Cabinet members” were invited to participate in a voluntary salary freeze, according to Doyle and Latham’s letter.
“In this environment, it is critical to proactively position ourselves to withstand the potential fiscal impacts with as minimal long-term negative consequences to our mission of teaching and research as possible,” Doyle and Latham wrote. “To that end, prudence dictates that we must slow our financial commitments to the greatest extent possible at least through the remainder of this fiscal year.”
Senior leaders are also asking administrators to prepare for more possible cuts in fiscal year 2026, which begins on July 1. The school is pausing non-essential travel and will curb discretionary expenses like catering, event hosting and consulting costs.
“These expenditures can add up across campus, and the more intentional we are in our spending decisions, the better our community can prepare for potential fiscal challenges in the months ahead,” according to the statement.
Can’t touch this
While Brown has a $7.2 billion endowment, the school cannot dip into those funds freely, according to a 2024 interview on how the endowment works with Jane Dietze, the school’s chief investment officer.
“Endowments are established as legal contracts with donors of large gifts who want their contributions to fund a specific purpose for the life of the institution,” Dietze said. “Each donation is codified in a gift agreement, which is a legal contract, that designates support for a specific purpose — for example, financial aid for students, endowed professorships, academic programs, research, libraries, etc. These gifts are pooled together and invested in a diversified portfolio of financial assets so that a portion of each gift — about 5% per year — can be distributed to the University’s budget for the designated purpose.”
Thursday’s announcement follows up on a March 5 letter from University President Christina Paxson which outlined potential steps to mitigate the economic uncertainty. Paxson cited several actions from President Donald Trump’s administration that could wound the school’s funding, including proposed cuts to indirect reimbursements for National Institutes of Health (NIH) research grants.
“While we do not want the 15% indirect cap to be implemented, it is only prudent that we plan for this possibility,” Paxson wrote of the NIH proposal, which remains in legal limbo. “Similarly, we will need to be ready with solid plans in the event that the federal endowment tax is increased or tuition revenues decline.”
Doyle and Latham provided updates on some of the possible cost-saving measures introduced in Paxson’s letter. The school has eliminated more than 50 vacant positions since January, has paused certain faculty searches, and has reduced Ph.D. admissions in several programs of study.
Prudence dictates that we must slow our financial commitments to the greatest extent possible at least through the remainder of this fiscal year.
The university still plans to proceed with proposed faculty and staff wage increases for fiscal year 2026, including a 3.5% salary pool. Meanwhile, Doyle and Latham will be meeting in the next few weeks with school administrators and unit leaders to review their budgets, which should “plan for potential financial downturns,” they wrote. The Corporation of Brown University will vote on the final version of the fiscal 2026 budget in May.
A university spokesperson did not have any additional information as of Thursday afternoon.
Doyle and Latham’s letter took note of “ongoing shifts in the national economic landscape” without citing specific impacts on Brown. The Associated Press reported that the S&P 500 slid 1.4% Thursday, dragging the market more than 10% below marking the market’s first correction since 2023.
The stock selloff comes amid President Donald Trump’s escalating trade war with Europe, which could soon impact consumers directly. The European Union is threatening retaliatory tariffs on American beer, cosmetics, hardware and metal tools, components for energy pipelines, motorcycles, and other products after Trump imposed 25% taxes on steel and aluminum imports this week.
This story was originally published by the Rhode Island Current.
