Update on Federal Actions, State Budget, and Rutgers' Response

March 27, 2025

Dear Faculty and Staff Colleagues:

As we enter one of the busiest months of our academic year, I want to keep you apprised of federal and state policies and plans, as many of the policies either adopted or proposed have the potential to impact Rutgers directly. I am sharing this information with my assurance that we are taking these matters seriously—but also with my confidence that Rutgers is in a strong position and will continue to carry out our mission through your excellent efforts across the university and beyond.

Federal Actions

Last week, the U.S. executive branch announced plans to close the federal Department of Education. While eliminating the department requires congressional action, media reports indicate numerous functions are being taken offline or moved—most notably student grants and student loans, which are reported to be shifting to another agency. We will do all we can to provide guidance as this situation develops, given the disruption such major changes may cause. The university’s primary concern is the continued support of our students, many of whom depend on functions within the Department of Education. That’s why we are supporting a multi-state legal challenge to the executive branch’s action based on the financial and operational harm it could do to the university and our students.

Similarly, we are watching closely to ensure that our international students are supported during this moment of shifting immigration policies, immigration enforcement activity around university campuses, and the possibility of restrictions on international travel and other enforcement measures being implemented. Our university community is international, and in times of challenge and uncertainty, Rutgers remains dedicated to fostering a secure and supportive academic environment for ALL our students, scholars, faculty, and staff. Rutgers Global continues to provide up-to-date guidance to students and other members of our international community who need it. 

I also want to remind you of the university’s guidance related to what to do if you see immigration and other law enforcement activity around campus, which is to call RUPD. Additional details of this guidance are posted to our FAQ page, Navigating New Federal Government Actions and Requirements.  

I shared earlier this month how the attorneys general of New Jersey and other states had broadly affirmed Rutgers’ approach to diversity. Rutgers is committed to inclusion, not exclusion, and to creating opportunities for all. Our diversity strategic plan articulates this goal, and it is the university’s expectation that its programs supporting our students, faculty, and staff are open to all and compliant with state and federal law. 

The Continuing Resolution passed by Congress this month to fund the federal government through September 30 maintains the current Facilities and Administration (F&A) rate for the institution, alleviating for now a significant source of concern for research and university operations. The NIH’s proposed cap of 15% for F&A would have had a more than $50 million impact on the university and done irreparable harm to our research programs and the broader community. The university will continue to advocate for federal support for university-based research, recognizing its vital contributions to innovation and America’s well-being.

State Budget

As we watch the federal budget closely, we are also monitoring the development of the New Jersey budget, which is being formulated as the state attempts to reduce its structural deficit. The governor’s budget, presented last month, includes nearly $2 billion in discretionary funding cuts statewide, with $70 million identified for Rutgers through proposed reductions in operating support to public higher education, the Garden State Guarantee, and the Summer Tuition Assistance Grant program, as well as numerous line-item cuts to individual university programs. [Note: Under the Governor’s proposed cut to the Garden State Guarantee (GSG), all current students already benefiting from it would continue to receive the GSG as long as they continue to meet the income and eligibility requirements. Incoming students with family incomes under $65,000 would also be eligible. The cuts would, however, eliminate GSG support for new students with family incomes above $65,000, who would no longer qualify.]

Rutgers is proud of its role supporting the state’s economy by educating its workforce, being among its largest employers, and serving the people of New Jersey. Our Government Relations team is working closely with our partners and colleagues in Trenton to improve the budget outlook and advocate for restorations to vital programs. In the meantime, deans and university leadership have been advised to carefully consider hiring plans, travel, and large expenses until the budget outlook is clarified. As university-wide offices planned for next year’s budget, they were instructed to reduce their budgets in anticipation of financial pressures.

As I close, I want to reiterate the importance of carrying out our mission through the work we do together every day: educating and supporting our students, conducting research that improves the well-being of humanity, and serving our communities and our patients. Let’s remember the great good that Rutgers does and keep our focus on this extraordinary mission during these final weeks of the academic year. And whatever your role on campus, whether faculty or staff, please know that your service to our mission is valued and appreciated.

Sincerely,
 
Jonathan Holloway
President and University Professor