CHICAGO — Northwestern University has begun implementing a series of austerity measures after facing a massive $790 million federal funding freeze, a move triggered by the Trump administration’s decision to halt federal grants to several universities under scrutiny for campus antisemitism.
The university’s leadership announced plans to cut staff, enforce a hiring freeze, eliminate bonuses, and amend employee healthcare coverage, sparking backlash from faculty, staff, and students.
Major Cuts and Campus Reaction
In an internal email circulated on June 10, Northwestern detailed its cost-cutting strategy, including:
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Reduction in university staff positions
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A campus-wide hiring freeze
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Elimination of performance bonuses
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Transition from Blue Cross Blue Shield to UnitedHealthcare for employee insurance
Faculty criticized the administration’s top-down decision-making approach. Engineering professor Luís A. Nunes Amaral said the university failed to engage its workforce:
“They’re not asking us, ‘What would you prefer to give up if we must?’ They’re imposing decisions without input.”
A petition signed by nearly 1,500 employees is circulating, urging the administration to allow workers to retain their current healthcare coverage due to concerns over UnitedHealthcare’s reputation for high costs and claim denials.
Impact on Students and Research
Students are also feeling the effects. Tuition assistance for student workers is being slashed from covering 90% of tuition to a capped amount of $12,000 annually, despite rising tuition costs.
A graduate worker told the Chicago Sun-Times that the policy change may derail her academic plans.
The funding pause also threatens critical research. Dr. Igor Efimov, known for co-developing the world’s smallest pacemaker, warned that the freeze puts both medical research and university jobs at risk.
“This isn’t just about labs — it’s about students, education, and the future of healthcare innovation.”
Why This Is Happening
The funding freeze stems from federal investigations into how universities are handling antisemitism on campus, with Northwestern among several institutions under review. As a result, federal grant payments have been suspended, directly affecting operations tied to research and education.
University officials say they are working to address the situation and clarify their eligibility for future funding, but uncertainty looms.
Are you a Northwestern student, faculty member, or alumnus? How are these cuts affecting your experience or research? Share your thoughts with the ChicagoSuburbanFamily.com team.
