On June 18, 2025, Chancellor Javier Reyes and Provost and Senior Vice Chancellor for Academic Affairs Fouad Abd-El-Khalick sent a message to faculty and staff regarding budget planning in preparation for potential federal funding cuts.
 

Dear Faculty and Staff,

Given the rapidly evolving federal landscape and recent plans and actions by the President and Congress, the university’s need for agile and proactive financial planning has become increasingly urgent.

Cuts of the magnitude outlined in the President’s budget proposal and the federal tax legislation advancing through Congress will impact every academic and administrative department—including those not directly supported by federal grants. To prepare for this, as we shared at the May 8 Faculty Senate meeting, all academic and administrative departments on campus have been asked to develop budget scenarios that include 3% and 5% reductions.
 

Federal Funding

UMass Amherst receives approximately $180 million annually in federal research grants and contracts. These awards include reimbursements for Facilities and Administrative (F&A) costs, also known as indirect costs, which help fund essential services. In FY24, UMass Amherst received approximately $51 million in F&A reimbursements, with more than $44 million coming from federal sources. These funds support critical, university-wide infrastructure services like digital systems, health and safety, grant administration, libraries, utilities, and facility maintenance.

The President’s budget also proposes deep cuts to the budgets of federal agencies that support research across campus, including the National Institutes of Health, National Science Foundation, Department of Education, Department of Energy, Department of the Interior, National Oceanic and Atmospheric Administration, National Endowment for the Humanities, Centers for Disease Control and Prevention, and Environmental Protection Agency.

If enacted, proposed rate caps on F&A reimbursements and cuts to funding agency budgets in the two federal budget and tax proposals to date could reduce UMass Amherst’s annual funding by up to tens of millions of dollars. To date, the university has already received $29 million less in federal research awards compared to this time last year.
 

Enrollment Challenges

Recent federal actions – from restrictions on travel to delays and suspensions in visa appointments – have significantly disrupted the lives and plans of our international scholars. While we do not yet know the ultimate effect these actions will have on our international enrollment, we must plan for the possibility that we will see a smaller international population on campus next academic year.

In addition, proposed reductions in need-based Pell grants could lead to across-the-board disruptions to every aspect of instruction. These grants have helped nearly a quarter of our students access a world-class education while providing a direct investment by the United States in the future of its own economic, social, and intellectual strength.

Limiting our capacity to serve all students—regardless of means or identity—undercuts the mission of public higher education. Further, these threats compromise our ability to plan and operate effectively as a global institution in service to a community that has contributed immeasurably to our strength.
 

Next Steps: Budget Planning

To be clear, while these proposed cuts and actions pose a serious threat to all of UMass, they are not yet law. UMass, alongside partners across higher education, is actively working to push back on these proposals and advocate for continued support of our critical mission in service of our nation’s scientific and educational enterprise.

That said, the proposals currently under discussion would have far-reaching consequences for universities nationwide. UMass would not be exempt, and no area of our campus would remain untouched by the effects of such cuts. Whether the cuts are as deep as described in the President’s proposed budget, or are somewhat less severe, a more constrained budget is anticipated in the year ahead.

As we navigate the uncertainty of these cuts, the only certainty we have is that we must be ready with a sound, fiscal plan.

To date, the university has been able to prioritize its resources by focusing on the livelihood of researchers affected by federal funding cuts. The ResCoE Fund has committed more than $700,000 in salary and research continuity funding to support nearly 50 graduate students, postdocs, and staff. While this flexibility reflects careful planning and shared values, it is not sustainable long-term—especially as our focus must shift from terminated grants to those not being renewed.

In addition to preparing 3% and 5% budget scenario plans, academic and administrative units should continue hiring only for positions deemed critical to the university’s operations. Requests for critical hires or expenditures over $50,000 must still be approved by the respective vice chancellor or, in the case of faculty, the provost.

We recognize that planning for an uncertain future is difficult, but we are certain that preparing for multiple scenarios will give us the flexibility we need to respond strategically and at every level to whatever federal budget is signed into law. Updates will be shared, as always, as soon as they are available on the university’s Federal Actions page.

Sincerely,

Javier Reyes
Chancellor

Fouad Abd-El-Khalick
Provost and Senior Vice Chancellor for Academic Affairs