Dear faculty and staff,
I’m writing with an update on the shifting federal landscape and its impact on Michigan State University.
Our approach
There is no question that these are unsettling times for universities and other public institutions. Actions that adversely impact the people who represent our capacity to serve students and society through our education, discovery and outreach missions should be regarded with concern.
Our approach has been to stay aware but not overreact, given the fluid status of many federal directives and actions. We are complying with the federal orders and communicating with affected faculty, staff and graduate students. We are also continuing to work through the courts, peer associations and our congressional delegation to help federal policymakers and the public appreciate Michigan State University’s legacy of impactful research and our stewardship of taxpayer investments.
I met last week with leaders across all administrative units and colleges to discuss our collective approach to assessing federal financial impacts on the university, given our existing budgetary pressures. This includes a three-horizon timeframe, using short-, medium- and long-term lenses, starting with careful reviews of budgets, vacant positions, nonpersonnel expenses and enrollment trends/projections.
For the first horizon, we are looking for near-term and other potential efficiencies and savings to address our current budgetary constraints and best prepare for future budget gaps that could result from federal cutbacks. We anticipate units’ responses for a collective set of suggested actions over the next couple of weeks. For the second horizon, we are currently in the annual budget review process, which normally takes place this time of year. That process will consider the medium-term constraints, particularly as they continue to evolve, as we seek to set our annual budget in June. Our third horizon could require considering options for larger, longer-term savings, but that timeframe will need to be responsive to external requirements stemming from potential federal policy changes.
While no decisions have been made yet regarding specific measures we will take, I want to be clear that our goal is to continue to uphold our mission and what we know is the fundamental value of public research universities like Michigan State. Our goal is to protect our assets, and there is no more important asset than our people.
Impacts
The U.S. Agency for International Development is one impacted organization with which Michigan State shares a long and productive relationship. In fact, two of my MSU predecessors — former presidents John A. Hannah and M. Peter McPherson — served as USAID administrators. MSU received approximately $23 million from USAID in fiscal year 2024 to support projects ranging from STEM education to food policy, production and supply chains. We are working with our colleges on their reviews of each project to determine the financial viability of continuing some portion of the work or how to bring the project to an orderly close.
The National Institutes of Health is also a significant source of research funding for Michigan State, and our Office of Government Relations continues to advocate for us and work to impress on federal lawmakers the consequences of proposed — and for now, court-blocked — NIH reductions. We will continue our advocacy on this front, and I want to thank Vice President for Research and Innovation Doug Gage for recently meeting with congressional members on Capitol Hill and our federal partner organizations.
I would also like to acknowledge WKAR General Manager Shawn Turner, who was in Washington, D.C., recently to support continued funding for public media. Numerous other MSU faculty and staff have been participating in advocacy days focused on topics ranging from support for the National Endowment for the Humanities to the importance of funding for graduate student support, biomedical research and graduate medical education. All these efforts are coordinated with, and through, our Government Relations team, which continues to work tirelessly on our behalf. Faculty and staff also participated in the nationwide March 7 Stand Up for Science rallies at state capitols.
Michigan State is closely connected to the U.S. Department of Education through programs including student financial aid, civil rights enforcement and the Integrated Postsecondary Education Data System, or IPEDS. Job cuts and buyouts have reduced its workforce by nearly half, which could affect its capacity to serve schools, colleges and universities. In a letter we received last Friday evening, the department said financial aid and loan programs would not be impacted, but we will continue to monitor this situation, considering its significant impact on our students.
The Department of Education’s Office for Civil Rights, meanwhile, informed colleges and universities it will target race-conscious programs for scrutiny, threatening investigations and loss of federal funding. But race-based considerations in public institution admissions, hiring and other practices have been prohibited in Michigan since voters’ passage of Proposal 2 in 2006. We remain confident that Michigan State operates within all state and federal laws prohibiting race-based discrimination and preferences in educational and hiring settings.
As a professor, I’ve seen firsthand how the different lived experiences of those participating in classroom discussions bring any curriculum to life. So, I want to reassure our community that Michigan State will continue to honor our core values as a proudly public, leading global research university by fostering an inclusive and supportive campus culture. While we will follow the law, who we are and what we believe won’t change.
Next steps
We will continue to monitor and assess federal actions and keep the campus community informed. Our 2025 Federal Transition website provides additional information and updates, including resources for researchers.
Our university has weathered tough times before, and it will again. Having met so many talented and dedicated faculty and staff over the last year, I’m confident that Spartans will ensure Michigan State is prepared. Now is the time for new innovations and creativity in areas such as forging new partnerships with industry and private foundations, as well as advancing our own entrepreneurship. We will remain strategic, bold and student-focused.
Sincerely,
Kevin M. Guskiewicz, Ph.D.
President
Professor, Department of Kinesiology