The university received around $1.35 billion in federal funding last year.
The University of Southern California (USC) faces a potential revenue loss of hundreds of millions of dollars in federal funds and staff layoffs, amid a “volatile external environment,” said Interim President Beong-Soo Kim in a July 14 letter addressed to faculty members.
Since President Donald Trump began his term in office early this year, his administration has sought to implement certain policy changes in the nation’s institutions, focusing on issues like males participating in women’s sports, anti-Semitism on campuses, and diversity, equity, and inclusion (DEI) programs. Federal funding is now contingent upon institutions aligning with the administration’s policies.
Kim wrote in his letter: “Like our peer institutions, we are experiencing significant shifts in federal support for our research, hospitals, and student financial aid, along with potential decreases in international student enrollment.”The University of Southern California (USC) faces a potential revenue loss of hundreds of millions of dollars in federal funds and staff layoffs, amid a “volatile external environment,” said Interim President Beong-Soo Kim in a July 14 letter addressed to faculty members.
Since President Donald Trump began his term in office early this year, his administration has sought to implement certain policy changes in the nation’s institutions, focusing on issues like males participating in women’s sports, anti-Semitism on campuses, and diversity, equity, and inclusion (DEI) programs. Federal funding is now contingent upon institutions aligning with the administration’s policies.
Kim wrote in his letter: “Like our peer institutions, we are experiencing significant shifts in federal support for our research, hospitals, and student financial aid, along with potential decreases in international student enrollment.”
The potential annual revenue loss for USC in federally sponsored research funding alone could be $300 million or more, he said, adding that the institution ended FY25 with an operating deficit in excess of $200 million, higher than last year’s $158 million deficit.
To address these challenges, the USC has taken steps like a freeze on hiring and salary increases, staff layoffs, cutting down on discretionary spending, selling unused properties, consolidating duplicative functions, and “adjusting compensation for the most highly compensated members of our community.”
Kim pointed out that it was not feasible to increase tuition, draw more from USC’s endowment, or take on additional debt.
Based in Los Angeles, USC employs around 4,000 instructional staff and about 17,000 non-instructional staff, according to numbers from Univstats.
The number of full- and part-time undergraduate students enrolled in degree or certificate programs comes to around 20,817 based on government data.
