UMass medical school implements hiring and spending freeze, considers layoffs

Leaders at UMass Chan Medical School are freezing hiring and discretionary spending, citing ongoing uncertainty surrounding federal funding. School administrators also said targeted furloughs and layoffs are "going to be necessary."

In a memo sent to employees Tuesday, UMass administrators said the school continues to advocate for federal funding, but leaders must take steps to protect against steep financial losses. The hiring and spending freezes go into effect immediately.

"These actions represent the only prudent and responsible path forward to address the very real and immediate impacts created," a UMass Chan spokesperson said in an emailed statement. "We remain fully committed to supporting our researchers, faculty, staff and students in working to advance our mission."

Several Massachusetts universities have recently taken steps to limit hiring or control spending in the face of federal funding threats. Harvard University on Monday announced a temporary hiring freeze. MIT implemented a hiring freeze last month for non-essential staff positions, and Boston University, which owns the broadcast license for WBUR, has added policies aimed at slowing spending.

The memo to employees, from UMass Chancellor Michael Collins and three other UMass officials, cited the Trump administration's plan to implement a cap on some federal research funding from the National Institutes of Health. The plan has been challenged in lawsuits. Despite a court-imposed preliminary injunction blocking the cap during legal proceedings, the memo said that is not "a final resolution," and noted that UMass stands to lose $40 to $50 million a year if the cap is implemented.

Additionally, the administrators said there has already been a slowdown in new federal grant awards, and they are bracing for potential federal cuts to Medicaid funding, which they said would "have far-reaching repercussions for Massachusetts, generally, and institutions like ours."

Medicaid, known as MassHealth in Massachusetts, is a joint federal and state program that helps cover health care costs for Americans with limited incomes and people with disabilities. The program covers a large portion of patients at UMass Memorial Hospital, which could lose critical revenue if reimbursements for care are reduced.

UMass Chan Medical School, which employs 6,000 people, also put on hold all promotions and raises, including an expected July 1 salary increase for some workers. The administrators said furloughs and layoffs are already being discussed with other school leaders and departments.

"While we wish there was a straightforward way to insulate our campus from these actions, the only prudent and responsible path forward is to act now," the memo said.