Stanford announced a hiring freeze amid growing concerns about cuts and delays in federal funding. Ian Cull reports.
Stanford announced a hiring freeze amid growing concerns about cuts and delays in federal funding.
The prestigious university is not alone as colleges around the country are trying to figure out what the White House will do next.
Stanford's announcement came in a letter to the community noting there are financial uncertainties for universities across the country. The university said there are two key reasons for the hiring freeze.
The first reason is the National Institutes of Health is looking to dramatically reduce the payments to higher education for research costs. If it moves forward with that scenario, Stanford's budget would be significantly impacted.
A congressional proposal to raise the endowment tax is the second reason prompting Stanford's hiring freeze.
The university has one of the largest endowments in the county at around $36 billion. Stanford said its endowment's annual payout supports two-thirds of the budget for undergraduate and graduate financial aid, and a major portion of faculty salaries, research, and student services.
"It’s definitely going to have a significant impact on how the university operates and what kind of research it’s able to do," said Ethan Hellman, a Stanford masters student.
The hiring freeze will not affect the hiring of faculty and student workers.
"We have more work to do on our next budget, and we will learn more in the coming months about the outcomes of the various federal policy proposals," Stanford's president and provost wrote in the letter. "Given the uncertainty, we need to take prudent steps to limit spending and ensure that we have flexibility and resilience."
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But amid all the uncertainty, the university also offered a note of confidence saying "Stanford is a financially healthy and resilient institution."
Students who spoke to NBC Bay Area on Thursday agree.
"If I have faith in anything, it's faith in the university, faith in the administration," Hellman said. "I think Stanford is probably one of the better positioned universities to handle a lot of these challenges."
