Brown University Battles $30 Million Deficit: Staff Layoffs on the Horizon

Brown University is facing tough financial challenges. Despite securing over $500 million in federal funding last summer, the university is laying off staff to tackle a growing budget gap. The agreement with the Trump administration eased some financial pressure but didn’t solve all the problems.

In a recent letter to the campus community, Brown’s leadership reported a deficit of $29 million for FY26. They project another $30 million in losses, prompting drastic cuts. The university plans to split the budget reductions into two halves. Each will aim for savings of $15 million.

To achieve this, the administration has outlined several key actions:

• Consolidate health plans with a single provider.
• Sell off some real estate holdings.
• Pause plans to shift to net-zero emissions.
• Reduce spending on IT and facility upgrades.
• Focus on immediate fundraising efforts.

Departments have been told to cut expenses by 2.5%. Some actions taken include:

• Cutting travel and vendor costs.
• Reducing discretionary spending.
• Eliminating 55 unfilled positions.
• Laid off 48 staff members.

Leadership has expressed concern for those affected by layoffs, offering severance packages and support services. The situation at Brown reflects a broader trend in higher education, where many institutions are grappling with similar financial strains. According to recent surveys, nearly 80% of college leaders report budget challenges, leading to layoffs and reduced programs.

In historical context, Brown has seen better financial days. Just a few years ago, budget deficits were manageable. Now, they are projecting a possible deficit of over $90 million if current trends continue. This shift illustrates how quickly circumstances can change, especially in higher education.

Even with the recent funding relief, Brown isn’t out of trouble. The university has borrowed significant amounts—$300 million and $500 million in the past year—to stay afloat. Continuing federal financial impacts suggest that more austerity measures will likely be necessary in the future.

As universities navigate these uncertain waters, they will need to adapt quickly. The decisions made now will shape the future of institutions like Brown and how they serve students and faculty alike.

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Brown University,Trump administration,Budget deficit,Staff layoffs,University finances,Endowment tax