University of Michigan Implements Proactive Measures in Response to Federal Funding Cuts

In response to potential federal funding reductions, the University of Michigan has announced a series of strategic measures aimed at protecting its financial stability. Despite the university’s strong financial standing, recent federal directives—specifically, a legal order to cease work on a multimillion-dollar project—have prompted the university to prepare for additional funding challenges that may arise in the near future.

As part of these efforts, the university is introducing new requirements related to hiring, budget management, and spending. These steps include:

1. Hiring Review Process:

   • All new hires for both regular and temporary positions (faculty and staff) will require approval from deans and executive officers, followed by a review from the president or executive vice presidents (EVPs).
   • The university will require approval for replacement, incremental, temporary, and contract positions. However, offers already extended to candidates will be honored.
   • Michigan Medicine will continue with its current hiring review process.

2. Non-Essential Expenditures:

   • Non-payroll commitments over $50K will require written approval from the president or EVPs before being processed, and this approval must accompany requisitions or contract requests to procurement services.
   • Additionally, units are encouraged to voluntarily review other non-essential expenditures, such as travel, conferences, and consultant fees, to identify potential savings.

3. Capital Spending:

   • Capital projects—including new buildings and infrastructure projects—will be closely reviewed. Projects that require regental approval will continue to be evaluated by the university's capital council, while ongoing projects will proceed as planned.

The university also noted that Michigan Medicine will receive separate, specific guidance regarding these measures.

In a joint letter, President Santa J. Ono, Executive Vice President Geoffrey S. Chatas, Provost Laurie K. McCauley, and Executive Vice President for Medical Affairs Marschall S. Runge urged faculty and staff to collaborate and engage thoughtfully in these efforts. The university’s leadership emphasized the importance of these proactive measures in ensuring continued institutional success amid uncertain federal funding.