> due to "significant financial uncertainty" in higher education,
This is directly linked to the new Trump administration's policies. The university explicitly cites potential deep cuts to federal research funding, new tax legislation affecting endowment income, and ongoing concerns about rapid growth and escalating costs as primary reasons for this decision.
This move comes as Cornell and 11 other universities have filed a lawsuit against the National Institutes of Health over funding restrictions that could cost Cornell $80 million. The university's four-month hiring freeze coincides with similar measures at other prestigious institutions like Stanford, MIT, and Northwestern, all responding to the broader context of the Trump administration's proposals to eliminate the Department of Education and Executive Orders reducing scientific research funding.
This new US government is deeply hurting itself and destroying most valuable assets. Which it needs to compete against China or Europe.
> This move comes as Cornell and 11 other universities have filed a lawsuit against the National Institutes of Health over funding restrictions that could cost Cornell $80 million.
This is less than 0.75% of Cornell's endowment, so I'm not sure there is a strong case for causation here.
I think you may misunderstand how endowments work.
An endowment is a collection of funds that have been donated. Generally each donation is for furtherance of some specific aim that the donor wanted to promote.
Usually the terms of the donation are that the money should be managed to support the purpose for which it was donated in perpetuity. To implement that the managers of the endowment invest the money for long term growth, and use the earnings to go toward the purpose of the donation.
Cornell currently spends each year around 5% from their endowment, as do most other top schools.
Endowments are usually not used to make up unexpected shortfalls for at least 2 reasons:
1. They are already spending all they can consistent with supporting the various causes the donors donated in perpetuity.
2. Because the endowment is a collection of individual donations that were donated for different purposes there might not actually be anything in the endowment that can be used towards a particular shortfall.
This is directly linked to the new Trump administration's policies. The university explicitly cites potential deep cuts to federal research funding, new tax legislation affecting endowment income, and ongoing concerns about rapid growth and escalating costs as primary reasons for this decision.
This move comes as Cornell and 11 other universities have filed a lawsuit against the National Institutes of Health over funding restrictions that could cost Cornell $80 million. The university's four-month hiring freeze coincides with similar measures at other prestigious institutions like Stanford, MIT, and Northwestern, all responding to the broader context of the Trump administration's proposals to eliminate the Department of Education and Executive Orders reducing scientific research funding.
This new US government is deeply hurting itself and destroying most valuable assets. Which it needs to compete against China or Europe.