The University of Southern California on Monday implemented sweeping budget cuts and a staff hiring freeze, citing financial stress from federal funding cuts.
Effective immediately, USC announced nine measures to "limit and reduce expenditures."
"We are writing to update you on the steps that USC is taking to protect our financial sustainability and academic mission," the university said in a letter published to the "We are SC" website. "As you are aware, colleges and universities across the nation are facing tremendous scrutiny and financial stress due to federal funding uncertainty, cuts, increased costs, and other risks."
The cuts come as the Trump Administration threatens to cancel federal contracts with private and public universities.
Get top local stories in Southern California delivered to you every morning. Sign up for NBC LA's News Headlines newsletter.
The UC system last week implemented a similar systemwide hiring freeze. Last Friday, Columbia University agreed to a list of demands by the Trump administration to restore $400 million in federal funding that was stripped away, accusing the New York school of "inaction in the face of persistent harassment of Jewish students," according to NBC News.
On March 10th, the Department of Education said USC, along with 59 other colleges, were under federal investigation for alleged antisemitic discrimination.
In Monday's announcement, USC said the university relies on about $1.35 billion in federal funding, including $650 million in student financial aid and $569 million for research initiatives.
Departmental cuts made at the start of the fiscal year will be the new baseline and all capital projects "will be reassessed to determine which may be deferred or paused," the school said. A staff hiring freeze with "very few critical exceptions" is in effect and faculty hiring "will be significantly restricted for all schools."
Non-essential business travel, conferences, and entertainment will also be restricted, the university added, and all department units have been directed to streamline operations.
"We understand the impact that these decisions have for our dedicated faculty and staff and want to assure you they were not made lightly," the school said.
As of June 2022, the Southern California campus endowment stood at approximately $7.3 billion, according to the "We are SC" website.
New leadership will soon take over USC as President Carol Folt plans to retire at the end of the academic year. Beong-Soo Kim, the current senior vice president and general counsel of USC, will serve as interim president.
"We remain optimistic that these measures will not only allow us to weather the current storm but also place the university on a stronger footing for many generations to come," university leadership said.
