Stanford implements hiring freeze amid concerns over cuts to funding
PALO ALTO, Calif. (KGO) -- Recent proposed federal cuts are leading to cutbacks at Stanford University including a hiring freeze.
The university said the hiring freeze is coming amid what it calls "potential financial uncertainties."
Those uncertainties surround proposed cuts to direct federal funding and expanding an endowment tax.
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The school's president and provost sent a letter Wednesday to announce that they were implementing the freeze. It does not apply to faculty positions, contingent employees or student workers.
ABC7 reached out to Stanford for more information but hasn't heard back.
In the letter, the university said it's developing its budget for the next school year, anticipating a significant cut because of the Trump administration's proposal to reduce research payments from the National Institutes of Health and a possible increase in the endowment tax.
As of August 2024, the endowment is $37.6 billion and pays for everything from salaries to financial aid to research.
"Most medical breakthroughs and innovations really happen in an academia setting, or at least, certainly the basic research lays the groundwork for those kinds of innovations, and a lot of that happens at Stanford with world-class faculty," said State Senator Josh Becker.
Becker said he's been working with Stanford law school, legislative colleagues and outside experts on how to address federal policy shifts under the new administration.
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"It's really quite, quite shocking, but I think Stanford is probably being prudent here by just taking a little bit of a wait-and-see approach," Becker said.
The news of the hiring freeze spread across campus not just via the open letter but also through publications like The Stanford Review.
Executive Editor and student Abhi Desai wrote this piece saying that the freeze, marks an opportunity.
"Obviously these funding cuts are not great for the university," Desai said in an interview with ABC7. "Maybe it's an opportunity for Stanford to rethink, 'Okay, how do we make things maybe a bit leaner, or make the processes at the school work a lot better?'"
Desai also said the university has engaged in politics, straying away from neutrality and in turn invited political and financial repercussions.
"I think the big point that institutions like Stanford should sort of think about is, how can we be institutionally neutral and really support students and professors and programs across the entire spectrum of ideas," Desai said.
In that letter to the campus community, Stanford's President and Provost said that it is still a financially healthy and resilient institution but that this planning now will be key to continuing to support students, research and staff.
