On March 19, University of California (UC) President Michael V. Drake announced that the UC system has ordered a hiring freeze and budget cuts to mitigate the impact of federal and state funding cuts. In a statement posted on the school’s website, Drake expressed concerns over recent administrative orders and proposed policy adjustments from the new government in Washington, D.C. that threaten funding for life-saving research, patient care, and educational support nationwide.
UC is one of the largest higher education systems in the U.S., with 10 campuses, six academic health centers, and three national labs. The university has over 280,000 students and 227,000 faculty members. Drake stated that he has instructed each UC campus to develop financial strategies and employee management plans to address potential funding shortages. Additionally, he directed all campuses to implement cost-saving measures such as delaying maintenance work and reducing business travel.
Drake emphasized that the federal and state funding cuts will have a “particularly profound impact” on the UC system. He and other school leaders are actively working with California and federal elected officials to ensure that the university’s mission and priorities are not compromised. Drake mentioned that the school’s legal team is prepared for this situation and is diligently working to protect the university and its mission.
The Epoch Times reached out to the White House for comments but had not received a response by the deadline. UC is among the schools that have recently announced hiring freezes due to financial uncertainties. Harvard University and Stanford University have also announced similar hiring freezes. Johns Hopkins University stated on March 13 that it would lay off 2,000 people globally after the Trump administration canceled $800 million in federal funding for the school.
On March 18, Moody’s downgraded the 2025 outlook for U.S. higher education from “stable” to “negative,” citing recent and potential federal policy changes that create a more challenging operating environment for universities. Moody’s indicated that the macroeconomic uncertainty resulting from policy changes and market fluctuations increases the risks for schools facing expenditure growth and enrollment challenges. It pointed out that top-tier schools with strong demand and ample funding are better positioned to address these challenges.