University of Michigan Adopts New Measures Amid Anticipated Federal Funding Cuts
Facing potential federal funding reductions, the University of Michigan is implementing strategic changes to its budget, spending, and hiring processes. These proactive measures aim to “buffer against negative, long-term impacts” of impending financial constraints.
The University’s new policies include several significant adjustments:
- Reevaluation of capital projects related to construction and renovation efforts;
- Mandating that all non-essential expenses exceeding $50,000 receive approval from the university president or executive vice presidents;
- Subjecting new staff and faculty appointments to presidential or executive vice-presidential approval;
- Encouraging departments to voluntarily curtail expenditures on travel, conferences, and consulting services.
In a recent communication, University President Santa Ono informed faculty and staff about the situation, highlighting a “legal notice from a federal agency instructing us to stop work on a multimillion-dollar project.” He anticipates this will be the first in a series of similar directives.
This development follows the Social Security Administration’s decision to terminate relationships with a consortium of six programs nationwide, including the Michigan Retirement and Disability Research Center located at the university. The SSA cited compliance with President Donald Trump’s executive order prohibiting federal funding for Diversity, Equity, and Inclusion (DEI) initiatives as the reason for these actions.
University Regent Jordan Acker expressed his concerns regarding the cessation of research projects, stating, “I am concerned when any research project, across our campuses, are stopped for any political reason. I expect our University to stand up for what it does best: improving the lives of Michiganders from across our state through groundbreaking research and medical care.”
Despite these challenges, Ono reassured that the university’s financial standing remains robust. He emphasized the institution’s commitment to modeling various scenarios and “taking prudent actions to be as prepared as possible to respond to financial events that may lie ahead.”
The University of Michigan’s health system, Michigan Medicine, will receive its own set of guidelines in light of these changes, with further details to be released soon.
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