PHILADELPHIA — The University of Pennsylvania has ordered a hiring freeze and other economies as the university braces for the impact of potential federal funding cuts under President Donald Trump’s administration.

The changes are “effective immediately, and until further notice,” according to an email sent to staff Monday and obtained by The Philadelphia Inquirer.

In the email, Penn Provost John L. Jackson Jr. and Craig Carnaroli, the university’s senior executive vice president, said the university would implement a “freeze on staff hiring, except for critical positions, student workers, and those funded by active grants or restricted sources.”

Officials also instituted a 5% reduction in non-compensation expenses.

“Schools and Centers should carefully review budgets and limit non-essential spending,” the officials wrote. “This applies to the remainder of the current fiscal year and for fiscal year 2026.”

They also ordered a freeze on staff midyear salary adjustments and reviews of capital spending and faculty hiring. Jackson and Carnaroli said that they were “only allowing searches that Schools deem essential to their missions and their highest critical priorities.”

Penn’s schools have already begun budgeting and forecasting for the 2025-26 academic year, they said, “including making difficult decisions regarding graduate admissions.”

Penn stands to lose $250 million in federal money as a result of a Trump administration order capping National Institutes of Health spending on funds tied to university and medical institution research. In reaction, the university has already announced a plan to cut incoming doctoral student admissions by a third.

Many Penn researchers have already received stop work orders, and additional federal proposals could affect student loans and increase the excise tax on endowments would affect the university further.

“Although the extent and final impact of these policies will not be known for several months, the direction is clear, and we are already experiencing reduced funding,” Jackson and Carnaroli wrote, adding that they are lobbying elected officials and industry representatives to “underscore the critical role federal funding plays in fulfilling our mission and benefiting society.”

Officials acknowledged “the the strain that these policies put on our community — and the uncertainties surrounding their timing and impact. In moments like these, we are guided by our core principles: protecting our missions, sustaining our culture, supporting our people, and judiciously managing our resources.”

Penn has weathered difficult financial times in the recent past — including the COVID-19 pandemic and 2008 financial crisis.

“The scope and pace of the possible disruptions we face may make them more severe than those of previous challenges,” Jackson and Carnaroli said. “With careful financial management, however, Penn is well-positioned to navigate them.”

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