Stanford University, which began its spring quarter Monday, is facing funding challenges and increased scrutiny from the federal government, according to university officials.
In February, Stanford administrators announced a hiring freeze in an open letter to students, faculty, and staff, citing potential funding cuts and tax changes. In its latest letter, sent on the first day of spring quarter, the university has pledged to address those concerns in a series of town halls.
Dates for the events have not been announced.
“We are sponsoring town halls to address uncertainty about science funding, providing resources and information for our international students, and addressing many other timely issues,” university leadership wrote.
University President Jonathan Levin and Provost Jenny Martinez said the university is focused on “federal policy issues” and shared “a few principles that are guiding our approach.”
“We are advocating for the importance of federal research funding that drives national scientific leadership and innovation,” the letter said. “We are committed to the fundamental mission of research and education in our decisions, policies, and financial priorities.”
This news organization has reached out to Stanford officials multiple times for specifics on strategies under consideration, whether the university can tap into its $37 billion endowment, how it intends to address the federal government’s anti-diversity policies, and its policy on allowing immigration police on campus. The university did not respond.
Aside from funding issues, the university is also dealing with increased scrutiny from the federal government.
Last week, the U.S. Department of Justice said it would investigate four California universities, including UC Berkeley and Stanford, to determine whether they are complying with a U.S. Supreme Court decision two years ago that outlawed race-based policies in college admissions.
In February, the university also removed diversity, equity, and inclusion information from its web pages, according to a report by student newspaper the Stanford Daily.
With a $37.6 billion endowment and a $9.7 billion budget, Stanford is Silicon Valley’s largest landowner, holding more than 8,000 acres in Santa Clara and San Mateo counties.
In February, the university pointed to the National Institutes of Health proposal to significantly reduce payments to universities for indirect research costs, a policy currently facing legal challenges at the federal level.
“Though this is currently under review by the courts, a cut of this magnitude would have a significant negative budget impact at Stanford. There is also uncertainty about the level of direct federal funding for scientific research as agencies like NIH and the National Science Foundation face cuts,” the letter stated.
Stanford University was named the third top medical university in the world, according to QS World University Rankings. The university is a leading center for medical research, which relies on substantial federal funding.
According to Stanford’s 2024 financial report, the university disbursed from its endowment $1.8 billion to support “vital academic programs and financial aid” during the fiscal year.
Stanford’s endowment fact sheet indicates that it spends about 5% of its endowment annually. A majority of this spending, about $456 million, supports undergraduate and graduate financial aid, while 23% goes toward faculty salaries, research, student services, libraries, athletics, and student financial aid.
Donors to the endowment restrict more than 75% of the payout for specific purposes, such as supporting first-generation college students or advancing a particular field of study.
The endowment portfolio is primarily invested in real estate, stocks, and bonds.
Randy Livingston, Stanford’s Vice President for Business Affairs and CFO, explained on the university’s endowment website, “It’s the income generated from investing the endowment, not the endowment principal itself, that supports our annual operating budget. If we start to consume the endowment principal, there will be less to invest and therefore less income to support the university in future years.”
The letter also addressed free speech on campus, a contentious issue.
The university faced criticism from both sides over its handling of a pro-Gaza encampment — one of hundreds set up at universities across the U.S. last year. A Stanford subcommittee found a prevalence of anti-Israel and antisemitic bias on campus, while the Council on American-Islamic Relations labeled the campus “hostile” to pro-Palestinian activists.
The spring letter emphasized that “academic freedom and a culture of open inquiry are at the core of Stanford’s ability to fulfill our mission of research and education.” It reiterated the university’s commitment to defending free expression, a value it called “essential to the American ideal of open exploration and opportunity.”