The University of Notre Dame has implemented an immediate staff hiring freeze. In an email to the campus community, university executives described the move as proactive, citing upcoming federal policy changes that could impact finances. The freeze does not apply to faculty positions, student workers, or temporary staff. Graduate students and post-doctoral scholars will receive updates on potential research funding cuts if Congress expands the university’s endowment tax.

Below is the letter sent to the Notre Dame community:

Dear Faculty and Staff Colleagues,

Like many of you, we have been busy seeking to understand the executive orders, federal agency directives, and other policy changes announced over the past several weeks.

In all of the University’s decision-making amid a changing landscape, we are guided first and foremost by our mission as a global Catholic research university that seeks to be a force for good in the world. This is reflected in our commitments to support our faculty, staff, and students, to advance the teaching and research that lie at the heart of the University, and to ensure that a Notre Dame education is accessible and affordable for students from all socioeconomic backgrounds.

With these core commitments in mind, we must acknowledge the financial implications of a number of recent developments. These include the direct cancellation of a growing number of federal grants and the National Institutes of Health’s announcement of a major reduction in the reimbursement to universities for indirect costs associated with its grants. Even more financially significant are proposals before Congress to expand the endowment tax paid by Notre Dame and other universities. As you may know, the payout from our endowment is a critical part of the University’s annual budget, funding most of our undergraduate financial aid, a significant number of faculty salaries, and various research programs. Proposed increases in the endowment tax could take the tax from its current rate of 1.4 percent to as much as 21 percent, to match the corporate tax rate. Even as we and other university leaders engage lawmakers to advocate on the issues that matter to higher education, it is important for us to take steps to mitigate the cumulative impact of these policy changes.

Fortunately, the University has maintained a disciplined fiscal strategy over many years that has allowed us to weather economic downturns and unexpected challenges, including the global COVID pandemic, without dramatic reductions. We are in a strong position to face these challenges and further our mission, and it is possible that we will be able to take advantage of new opportunities that emerge.

At the same time, the changes we have seen in the last month and those on the horizon have a direct bearing on Notre Dame’s finances. It is important for us to be proactive.

To meet the current challenges and those we might face in the future, we are taking three important steps. First, we are implementing a staff hiring freeze, effective immediately. Critically needed positions may be approved via a central review process, but these exceptions will be limited. Please note that the freeze does not apply to faculty positions, student workers, or, in some instances, temporary workers. Second, we are asking every budget unit to reduce spending where possible. Knowing that you share our commitment to being careful stewards of the University’s resources, we ask that you redouble your efforts to eliminate any unnecessary expense or waste, and to find new cost-saving measures. Among others, travel, entertainment, and events expenses should be monitored. Finally, the leaders of each division, college, and school will be asked to proactively model a 5 percent budget reduction in the event the financial impact of government actions should become significantly more dramatic.

In the coming days, we will disseminate more information about these measures. We are also communicating with graduate students and postdoctoral scholars who may be impacted by the reduction in research funding. In addition, we are working closely on a case-by-case basis with those employees affected by federal funding cuts.

Thank you in advance for your active participation in our efforts to be careful stewards, as doing so will allow us to be in the best possible position to support all members of this community and advance the University’s mission. Let us approach the challenges of these times with the same courage, determination, and care for one another Notre Dame has demonstrated throughout its history, walking together as a community of faith, hope, and love. Thank you for the ways you embody the very best of Notre Dame. Know that you and your loved ones are always in our prayers.

In Notre Dame,

Rev. Robert A. Dowd, C.S.C.

President

John T. McGreevy

Charles and Jill Fischer Provost

Shannon B. Cullinan

Executive Vice President