The University of Southern California (USC) is taking significant steps to cut costs amid growing concerns over federal funding. In a letter released on Monday, university leaders, including outgoing President Carol Folt, announced a series of austerity measures. These include a hiring freeze for staff and a review of capital spending projects, all in response to what USC describes as “federal funding uncertainty.”
This decision comes as USC faces multiple investigations initiated by the Trump administration. The administration has threatened to cut federal funding for universities that do not comply with its directives, which include curbing antisemitism and eliminating diversity and inclusion programs. USC has already received around $570 million in research funding for the current fiscal year, making these cuts particularly concerning for the institution.
Folt’s letter emphasized the need for USC to bolster its financial resilience in light of these challenges. The university is already grappling with a $158 million budget deficit, as highlighted by an internal financial planning task force last November. The letter noted that taking decisive action now is crucial for USC to maintain its academic and research missions in the future.
The scrutiny from the Trump administration has intensified following allegations of antisemitism related to pro-Palestinian protests on campus last spring. Investigations by the Department of Justice and the Office for Civil Rights are currently underway, and a federal antisemitism task force is scheduled to visit USC.
In response to external pressures, USC has made notable changes in recent months, such as merging its Office of Inclusion and Diversity into another department and removing several diversity statements from its websites. These actions reflect a broader trend among universities facing similar pressures from the federal government. For instance, the University of California recently announced its own hiring freeze and budget cuts due to similar threats.
Faculty members at USC have expressed concern over the hiring freeze and its potential impact on ongoing projects, such as an ambitious new computing initiative. Professors have voiced frustration, feeling sidelined from important decisions that directly affect their work and the future of the university.
USC’s leadership has refrained from further comment, referring inquiries back to the letter and the earlier financial planning memo. As the situation unfolds, faculty and staff are left grappling with uncertainty about the university’s direction and the implications of these federal investigations and funding threats.