Cornell slashes budget after Trump admin freezes $1 billion
Cornell University is facing budget cuts, workforce reductions, and a restructuring plan after the Trump administration froze $1 billion in federal funding over DEI and anti-Semitism concerns.
At the same time, the school renamed its DEI office and faced backlash for hiring an anti-Israel performer, prompting criticism from Jewish students and advocacy groups.
President Michael I. Kotlikoff and other administrators of Cornell University have announced sweeping steps to address what they called “acute fiscal pressures” affecting the university.
In a community-wide letter on Aug. 22, school leaders warned that reductions in government funding and mounting legal and regulatory expenses have placed Cornell in a precarious financial position.
“Cornell faces acute fiscal pressures arising from a number of factors,” the letter stated. “Urgent action is necessary, both to reduce costs immediately and to correct our course over time — achieving an institutional structure that enables us to balance our budgets over the long term.”
Immediate steps include hiring restrictions across all campuses, with only rare exceptions approved by position control committees.
The university is also undertaking an analysis of its budgetary structure aimed at eliminating inefficiencies and reducing duplication.
“Cornell’s decentralized structure is part of our tradition, but a source of significant administrative inefficiencies; part of our task is identifying opportunities to scale and regularize our academic support systems across units,” the letter stated.
Leaders acknowledged that restructuring will likely involve workforce reductions, describing the prospect as “painful” but necessary. Town hall meetings begin this week, with detailed plans expected by late 2025 and implementation extending into 2026.
In April, the Trump administration froze $1 billion in federal funding for Cornell University, citing Diversity, Equity, and Inclusion (DEI) and anti-Semitism.
Months later, in August, Cornell quietly renamed its Office of Academic Diversity Initiatives to the Office of Academic Discovery and Impact on Aug. 1.
An internal email said the change was meant to “think strategically about who we are,” describing the new office as a hub for students from “diverse backgrounds” and other underrepresented groups.
Since Hamas’ Oct. 7 attacks against Israel, Cornell has consistently made headlines for reported instances of anti-Semitism on its campus.
Earlier this year, for example, Cornell hired singer Kehlani to perform on campus despite her history of anti-Israel statements, including calling for Zionism to be “extinguished.” Anti-Semitism watchdogs condemned the decision, with Liora Rez, director of StopAntisemitism comparing it to inviting the KKK to perform for Black students.
Cornell President Kotlikoff said administrators only discovered Kehlani’s rhetoric weeks before the event but could not replace her. Amanda Silberstein, president of the Cornell Chabad center, called this claim “laughable.”
”It doesn’t take a private investigator to uncover that, Silberstein said. “Just a Quick Look at her social media.” Eventually, the school dropped the pro-Palestine singer amid complaints from the school community.
Campus Reform has reached out to Cornell University for comment and will update this article accordingly.
