The Massachusetts Institute of Technology ( MIT) will reduce its graduate student intake and lay off staff as federal funding cuts and new tax rules tighten pressure on the institute's budget, signaling broader concerns for the US research ecosystem.
Facing reduced support from key federal agencies such as the National Institutes of Health, MIT will cut enrollment in its research graduate programs by around 100 students for the 2025 academic year, a Bloomberg report said. This represents an 8% drop from the current year, according to MIT spokesperson Kimberly Allen.
The move comes alongside job reductions in administrative departments, driven by a university-wide directive to slash central budget allocations to academic and support units by up to 10%. Allen did not specify the number of employees affected.
MIT President Sally Kornbluth warned that further disruption may lie ahead. “There could be more damage to MIT and to universities all across America, and to the entire American research ecosystem,” she said in a statement. “While we do everything in our power to prevent that, we’ll also be working to prepare the Institute and our community for a range of outcomes.”
The cuts reflect growing uncertainty stemming from policy shifts under the Trump administration. Beyond reductions in federal grants, the US House of Representatives has approved a measure to impose a 21% tax on net investment income for private colleges with large endowments. This is a sharp increase from the current 1.4% rate. MIT’s $25 billion endowment is largely designated for specific uses and cannot be easily redirected to cover funding shortfalls.
Kornbluth called the proposed tax hike “a devastating level of taxation” and warned it could cost the university hundreds of millions of dollars—funds that support research and student aid.
Compared to neighboring Harvard University, which has seen more severe funding freezes, MIT’s position remains relatively stable. However, Kornbluth noted that even limited cuts are creating significant stress on institutions reliant on federal support for research initiatives.
“I truly wish there were another way to do this,” she said regarding the job cuts.
MIT has also launched an online campaign to raise awareness of its contributions to national scientific innovation and security. Kornbluth encouraged alumni to advocate for research funding. “We need the whole country to appreciate that by investing in university research and educating the next generation of explorers and innovators, the country has reaped, and will continue to reap, tremendous rewards,” she said.
Facing reduced support from key federal agencies such as the National Institutes of Health, MIT will cut enrollment in its research graduate programs by around 100 students for the 2025 academic year, a Bloomberg report said. This represents an 8% drop from the current year, according to MIT spokesperson Kimberly Allen.
The move comes alongside job reductions in administrative departments, driven by a university-wide directive to slash central budget allocations to academic and support units by up to 10%. Allen did not specify the number of employees affected.
MIT President Sally Kornbluth warned that further disruption may lie ahead. “There could be more damage to MIT and to universities all across America, and to the entire American research ecosystem,” she said in a statement. “While we do everything in our power to prevent that, we’ll also be working to prepare the Institute and our community for a range of outcomes.”
The cuts reflect growing uncertainty stemming from policy shifts under the Trump administration. Beyond reductions in federal grants, the US House of Representatives has approved a measure to impose a 21% tax on net investment income for private colleges with large endowments. This is a sharp increase from the current 1.4% rate. MIT’s $25 billion endowment is largely designated for specific uses and cannot be easily redirected to cover funding shortfalls.
Kornbluth called the proposed tax hike “a devastating level of taxation” and warned it could cost the university hundreds of millions of dollars—funds that support research and student aid.
Compared to neighboring Harvard University, which has seen more severe funding freezes, MIT’s position remains relatively stable. However, Kornbluth noted that even limited cuts are creating significant stress on institutions reliant on federal support for research initiatives.
“I truly wish there were another way to do this,” she said regarding the job cuts.
MIT has also launched an online campaign to raise awareness of its contributions to national scientific innovation and security. Kornbluth encouraged alumni to advocate for research funding. “We need the whole country to appreciate that by investing in university research and educating the next generation of explorers and innovators, the country has reaped, and will continue to reap, tremendous rewards,” she said.
You may also like
Oil India records 10 pc rise in net profit at Rs 6,114 crore for FY25
Olly Murs concert: Singer cancels more tour dates hours before gig after walking off stage
Construction firm IRB Infra's shares tumble over 31 pc in last 1 year
Punjab refutes Haryana's claims on water allocation
UP ATS arrests Seelampur resident for alleged links with Pakistani operatives, military
