U.S. Universities Count the Cost After One Year of Trump

"A year on since the U.S. president's inauguration on Jan. 20, 2025, top universities are counting the cost of persistent attacks- which kicked off with significant cutbacks to federal research funding. Although many of the harshest cuts have been quietly rescinded or blocked by the courts, universities have suffered considerable damage and are likely to face more systematic reforms to research in future, said Marshall Steinbaum, assistant professor of economics at the University of Utah."

""Beyond the high-profile, ideologically ostentatious cuts to some aspects of federally funded research, the whole enterprise is set to be less lucrative for universities going forward," he told Times Higher Education. Even though many of the cuts might not come to fruition, the uncertainty caused by having to plan for potential cuts had been the most damaging aspect, said Phillip Levine, professor of economics at Wellesley College. "There's still tremendous damage that's been done, [but] the damage isn't as extensive as it could have been.""

Uncertainty from the second Trump administration has been the most damaging factor for higher education, hitting university finances despite many proposed cuts not yet taking effect. Significant cutbacks to federal research funding initiated attacks on top universities and may presage systematic reforms to research. Some harsh cuts were rescinded or blocked by courts, but universities still suffered considerable damage. Planning for potential cuts created major disruption. Visa concerns contributed to a sharp fall in some international student numbers, while several elite institutions reported operating deficits in 2025.

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