The University of Southern California (USC) has implemented cost-cutting measures due to federal funding uncertainties, including a hiring freeze.
This decision was made following threats by the Trump Administration to cancel federal contracts with private and public universities.
The big picture: USC has outlined various steps to ensure its financial sustainability, including permanent budget reductions, procurement controls, a slowdown in capital spending, and a hiring freeze for both faculty and staff.
- USC received significant federal funding in fiscal year 2024, with approximately $1.35 billion allocated for student financial aid and research.
- In response to the financial challenges, USC has decided to retire its extended winter recess that was initially introduced during the COVID-19 pandemic. University staff have been advised to plan their vacation time accordingly.
Zoom out: The UC system has also implemented a hiring freeze in response to funding uncertainties, indicating a broader trend among universities facing similar financial challenges.
What they’re saying: “While every member of the university has contributed to the substantial progress we’ve made to mitigate and reduce our structural deficit, recent developments require us to take additional steps to increase our financial resilience,” the university said in a message to campus.
