Northwestern University has announced a full hiring freeze and sweeping budget cuts following the Trump administration’s decision to halt $790 million in federal funding. In a June 10 letter, university leaders cited rising operational costs and increased federal scrutiny as reasons for the drastic measures.
The freeze affects all faculty and staff positions. Employees will receive no merit raises or bonuses, and university departments face permanent budget reductions. Health insurance programs will be restructured, and tuition benefits for future dependents will be reduced.
The cuts follow earlier cost-saving steps and come amid a federal push to cap research grants, tax large endowments, and limit international student enrollment. Northwestern’s leadership blamed these changes for its financial instability but also pledged to pursue legislative and legal efforts to restore funding.
As the largest employer in Evanston, the university’s cost-cutting could have economic consequences beyond campus. Conservative leaders have emphasized the need for financial accountability in higher education, especially when taxpayer funds are involved.
