Nearly a year after Penn first implemented “proactive financial measures” in response to federal funding uncertainty, the University is set to institute another round of budget cuts throughout the upcoming fiscal year.
Provost John Jackson Jr. and Executive Vice President Mark Dingfield outlined Penn’s financial plan in a message last week, instructing all schools and centers to reduce “certain expenditures” by 4%. The Daily Pennsylvanian spoke with faculty members who expressed confusion and concerns over the latest budget reductions.
“No budget cuts have been decided or implemented,” Division of Finance Communications Director Annie Weinstein wrote to the DP. “Any actions that may result from this planning will be guided by our commitment to long-term financial sustainability, our academic mission, and a desire to preserve the flexibility of Schools and Centers.”
Jackson and Dingfield’s message — which comes after initial cost-cutting measures were implemented last year — attributed the new financial constraints to uncertainty over federal policy changes and rising costs across the University.
“As the impacts of federal policy changes have become clearer and costs continue to rise across the University, we are reaffirming our responsibility for careful financial management,” the Jan. 29 email stated.
Despite describing Penn’s current financial position as “better” than “anticipated a year ago,” Jackson and Dingfield asked schools and centers to take “proactive measures” that “thoughtfully manage costs and support our long-term financial outlook.”
“We took a pretty decent cut last year and were hoping it would rebound,” Earth and Environmental Sciences professor and Graduate Chair Leigh Stearns wrote to the DP. “It’s really hard to sustain research programs without students.”
In February 2025, the University instructed several schools to cut Ph.D. admissions rates, and in some cases, after programs had already accepted students.
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Those reductions to admissions came in response to federal policy changes — including the National Institutes of Health’s proposed 15% cap on indirect costs, which threatened $240 million in Penn’s research funding.
A month later, Penn outlined new financial guidelines for the University, such as a hiring freeze and a capital spending review.
Turkish Language Program coordinator and lecturer Feride Hatiboglu described how departments are still adjusting to last year’s reductions.
“In the near future we are going to feel more about its effects with decreasing student numbers and programs,” Hatiboglu wrote. “Under these circumstances budget cuts are the last thing we need.”
Graduate School of Education professor Julie Wollman echoed a similar sentiment and said that while schools were asked to prepare for potential reductions ahead of the upcoming fiscal year, “there are no budget cuts” yet.
She added that the University is asking schools to be ready “if there was a need to make budget reductions.”
The School of Engineering and Applied Science’s Associate Dean of Undergraduate Education Robert Ghrist wrote that he “understands” why Penn’s administration is pursuing the financial planning, calling it a “tough year.”
Ghrist added that if cuts are implemented, “what is most important” to him is the “undergrad student body” and he will “take care of them above all.”
The budget cuts to schools across the University come as several Ivy League institutions have made similar reductions. On Monday, Princeton University announced further budget cuts following a previous 5-7% budget cut announced last year. Peer institutions such as Harvard University and Yale University face similar uncertainty surrounding hiring stability and graduate school funding.
In the Jan. 29 email, Jackson and Dingfield claimed Penn’s previous cost-cutting initiatives avoided “the more stringent measures announced by some of our peer institutions.”
History and sociology of science Ph.D. candidate Sam Schirvar, who serves as an organizer for Graduate Employees Together — University of Pennsylvania, wrote that Penn has the resources to “weather this storm” and “should continue using its vast resources to fight these attacks on higher education.”
Annenberg School for Communication professor Jessa Lingel attributed the push for a 4% spending cut across schools and centers to a decision made by Penn Forward’s Operational Transformation working group — one of six committees established by the University’s new strategic framework.
According to Lingel — who serves as a member of the Faculty Senate — Operational Transformation is the only working group without any faculty representation, which she argued is an indication that only administrators are involved with “real decisions.”
“The way that these changes are being rolled out is just another reminder that we don’t actually have a seat at the table,” Lingel said.
She added, “Faculty and staff spend decades of their lives working at this institution. I think we have a right to be a part of those conversations.”
RELATED:
Penn to cut school, center budgets by 4% amid federal policy ‘uncertainty’
SAS Ph.D. admissions set to partially rebound in upcoming cycle following fall 2025 cuts
Senior reporter Ananya Karthik covers central administration and can be reached at karthik@thedp.com. At Penn, she studies communication and economics. Follow her on X @ananyaakarthik.
Staff reporter Danna Cai covers climate and sustainability and can be reached at cai@thedp.com. At Penn, she studies biology. Follow her on X @dannaacai.
