Princeton U. Pauses Faculty, Staff Hiring Amid Federal Funding Uncertainty

PRINCETON, NJ – Princeton University has announced it was currently pausing most faculty and staff hiring amid uncertainty over federal funding and potential expansion of endowment tax.

In a memo sent to the faculty and staff, Provost Jennifer Rexford said the university will taking several steps in the coming months to restrict spending and cut costs.

Rexford said that the possible expansion of government endowment tax and restriction on research funding, the “longstanding compact with the federal government,” is currently “under stress”.

“Against this backdrop, University leadership has for several months been conducting contingency planning to help us protect our core mission of research, teaching, and service at a time of considerable uncertainty and risk,” Rexford said.

The memo said the University was protecting priorities of the University in all areas of operations and planning, including revisiting the budget planning for next year avoiding unnecessary costs, and slowing the growth of expenses.

In the coming months, Princeton University will

• Avoiding staff growth, except in mission-critical circumstances. “We are also carefully reviewing requests to fill vacancies, including opportunities for repurposing positions to higher priorities,” Rexford said.

• Postponing most faculty searches that are at an early stage in the search process.

• Returning the annual employee merit increase pool to the pre-pandemic norm.

• Evaluating the capital plan and considering changes to scope and schedule for major projects that are in early planning stages.

“This is not a comprehensive list and more serious actions may be required as the external environment changes. However, we believe that our best defense against more serious actions in the future is campus-wide exercise of financial prudence now,” Rexford said in her memo.

“On that front, we need everyone’s help. Please look for ways big and small to restrain non-critical spending, which will give us flexibility down the road. Please be attentive and supportive of cost-saving measures implemented in your unit and in other areas. And most importantly, please stay focused on your work, which is critical to Princeton’s mission of service to the nation and to humanity.”

The memo also noted that tax changes under consideration in the Congress threatens Princeton’s endowment, which pays for about two-thirds of almost everything the University do, including financial support for students.

“And more broadly, there are federal policy changes underway in the enforcement of immigration and civil rights laws, diversity and inclusion initiatives, and acceptance of gender differences. Mass layoffs at federal agencies may mean serious disruption to government services we have come to rely upon, from student financial aid to visa processing to various licensing and permitting functions,” Rexford said.

“We recognize this is an unsettling and stressful moment in our community, and that there is a hunger for detailed information and specifics. As external circumstances develop, you can expect to hear directly from leaders in your unit about additional information or changes that affect you.”

These protective financial measures were put in place after the federal government announced it was canceling $400 million in grants and contracts to Columbia University alleging the institution had not complied with federal and anti-discrimination laws amid the Israel-Hamas war.

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