Editor’s note: This article was updated to reflect accurate information regarding the discreteness of two potential impacts of federal funding cuts on the University of Wisconsin.
The University of Wisconsin will implement fiscal controls for the remainder of the 2025 fiscal year, including hiring reviews, reductions in non-essential spending and the development of 5% and 10% budget reduction scenarios for fund 101 — a fund dedicated to state tax, federal indirect cost and tuition allocation.
Fiscal controls predominately refer to policies and procedures regarding financial resources management, UW assistant director of media relations Greg Bump told The Badger Herald in an email statement.
The new fiscal controls outlined in the letter are there to protect the university during a period of financial uncertainty while continuing to support UW students and their research, Bump said. UW remains aware of potential federal funding cuts to research and other university programs and inflation from increasing tariffs.
Additionally, the university is reviewing main funding commitments and exploring ways to reduce administrative costs, Bump said. Regarding research enterprise funds, plans are being developed for centrally sourced bridge funding.
Bridge funding is a financial tool to bridge the gap between major financing rounds or significant transactions.
UW utilizes funds from a variety of sources, including state and federal funds, gifts and non-federal grants, tuition and fees.
“The university is conducting budget exercises that apply to our general operating fund,” Bump said in the email. “It’s important to stress that these are exercises — not binding decisions.”
There are no plans for UW to change student financial aid offers, according to Bump. But, students could potentially be impacted by reductions in federal funding in other ways, Bump said.
For example, students could experience losses in opportunities for graduate assistant programs. Additionally, funding cuts could result in higher student-to-career counselor or advisor ratios if these positions are not backfilled after layoffs.
UW is staying connected with other Big Ten universities — including several that have taken similar financial precautions amidst education financial uncertainty across the country, Bump said.
Michigan State University sent out a letter to faculty and staff stating they are continuing to monitor federal directives and acknowledge the multiple aspects of university projects, which could be impacted during this financial uncertainty.
Similarly, the University of Minnesota-Twin Cities sent out a letter to its faculty and students reminding them of the university’s value of inclusivity as well as providing resources to clarify questions and concerns over recent federal changes.
