Federal budgets cuts hit the University of Arizona

The Trump Administration has halted billions in federal funding to colleges and universities nationwide. Here in Tucson, at the University of Arizona, the impact is immediate and deeply concerning as faculty, staff, and administrators scramble to adapt.

Since the start of Trump 2.0, multiple UA programs have suffered. One major blow: the National Institutes of Health capped facilities and administrative (F&A) cost reimbursements at 15%, a move U ofA CFO John Arnold estimates will cost the university $130 million for this one action alone.

Cuts to the U.S. Agency for International Development (USAID) have led to four program cancellations, while slashed funding from the National Endowment for the Humanities has ended eight projects. A recent Department of Education demand to eliminate any race-conscious programs still in place also threatens funding.

Federal grants and contracts make up 29%—or $878.7 million—of UA’s $2.99 billion annual budget. With cash reserves already stretched thin, UA projects just 76 days of cash on hand by June 2025, far short of the 143-day minimum recommended by the Arizona Board of Regents—and that estimate came before the new administration took over.

Time will tell how the university will manage these financial hits. John Arnold recently stated that the university is running various models. However, models are only a best guess based on an anticipated or predicted future. That is almost impossible given the chaos in Washington and the execution of Executive Orders against education under Trump 2.0.