The Massachusetts Institute of Technology said it’s preparing for “significant new financial pressures,” including an increased tax on its endowment and uncertainty about federal science funding under President Donald Trump.
“Dealing with financial realities is our focus,” MIT President Sally Kornbluth said in a letter to the campus community Tuesday, promising to provide additional details about the severity of the challenges in the coming weeks.
MIT’s warning follows similar messages from other prominent US universities after months of pressure from the Trump administration. Last month, Cornell University warned of “urgent action” and signaled more job cuts, Princeton University said it’s implementing a new round of cost reductions and the University of Chicago said it aims to slash spending by $100 million.
Trump has paused billions of dollars in US research funding for universities, accusing them of mishandling antisemitic incidents on campus, attacking them for their diversity programs and alleging they have a left-leaning political bias.
MIT earlier this year announced a hiring freeze on staff positions and said many departments have reduced the number of graduate students they’re admitting.
Under tax changes backed by Trump, MIT is one of a handful of universities including Harvard and Yale that will pay 8% on net investment gains in their endowments, up from 1.4 percent. MIT’s investment fund was valued at $24.6 billion as of June 2024, the most recent public figure.