Stanford University freezing hires, preparing for Trump administration cuts

PALO ALTO, Calif. - Stanford University is freezing its hires for future staff and they are also considering cutting positions as cuts to federal government funding continue. 

As Stanford leaders work on next year's budget, they say they have two driving forces they need to consider, which might mean less money to work with.

President Trump is proposing cuts to the National Institutes of Health to spend less. The NIH is the single largest agency that provides funding to all research hubs, including universities. 

They're working to cut down spending on indirect fees, like building costs, equipment and maintenance.

Most universities use about 30% of its grants on those costs. But the Trump administration wants to cap that at about 15%.

 Additionally, there are proposals in Congress for universities to pay higher taxes on the donations they receive.

One comes from Republican New York Congressman Mike Lawler, who introduced the Endowment Accountability Act earlier this month, who said he wants to "encourage colleges and universities to stop hoarding billions of dollars in their endowments, and actually spend that money on services for current students." 

He said that his legislation will help ensure "folks have access to a quality, affordable education, starting at pre-K all the way to college."

In a statement, Stanford's provost, Jenny Martinez, and President Jonathan Levin, said the endowment supports roughly two-thirds of the budget for undergraduate and graduate financial aid, as well as a significant portion of faculty salaries, research, and key programs like libraries and student services.

Those freezes are being challenged by the courts, but Stanford said it's trying to prepare for what it calls future uncertainty. 

Some hiring can be approved by university leaders on a limited basis. 

The freeze will not affect faculty positions, part- time employees or student workers.