We are writing with important information and updates regarding strategies and actions to address the University's structural budget deficit and ongoing financial sustainability. As Brown continues to assess the potential significant impacts of federal government actions and ongoing shifts in the national economic landscape, the University has to take more immediate steps than the actions previously announced for Fiscal Year 2026, beginning with the current fiscal year. 

In this communication, we outline the following actions and provide background and context for these decisions:

• Proceeding with faculty and staff compensation increases for FY26, as planned
• Instituting a mandatory salary freeze for members of the President’s Cabinet and a voluntary freeze for other highly compensated administrators
• Instituting a temporary staff hiring freeze, effective immediately 
• Freezing non-essential travel, effective immediately
• Slowing FY25 discretionary spending, effective immediately

It's important to note that, in all we do, we maintain deep commitments to Brown's mission and to treating our community with dignity and respect. We must be able to persist in educating talented students from around the world and supporting the excellent research and scholarly study of our faculty. And we must support to the greatest extent possible the staff and operations that sustain our community of teachers and learners. The actions being put into place to address our financial challenges calls for a shared commitment to work together to implement solutions that support the core priorities of our community. 

Planning Within an Evolving National Financial Landscape

As President Paxson communicated in her campus message last week, and we communicated in December, Brown’s administrative leaders have been actively working to navigate the federal government actions that pose ongoing challenges to our core academic mission of education and research, to the ability of some members of our community to continue to participate fully in the life of the University, and to various academic and administrative operations. In October, we wrote to you about the Financial Health Initiative we launched to address Brown’s structural budget deficit, which if left unaddressed, will continue to grow. This work has become increasingly urgent as we continue these budget efforts against the current backdrop of increased financial uncertainty owing to the evolving federal landscape. 

In this environment, it is critical to proactively position ourselves to withstand the potential fiscal impacts with as minimal long-term negative consequences to our mission of teaching and research as possible. To that end, prudence dictates that we must slow our financial commitments to the greatest extent possible at least through the remainder of this fiscal year. We have engaged in extensive analysis of Brown’s spending and financial operations and carefully developed several actions to strengthen our financial position and navigate these challenges effectively. These steps are in addition to the actions President Paxson outlined in her message last week, which noted the cancellation of several faculty searches, the decision to leave several staff vacancies unfilled, and the reduction of Ph.D. admissions targets across a number of Brown’s graduate programs.

These actions, and those outlined below, are taking place at the same time we have begun reviewing the FY26 unit-level budget submissions. We are deeply grateful for the thoughtful and meticulous work that went into the preparation of these submissions. We asked units to assume flat budgets, at best, in the budget planning guidance issued in the fall. In addition, each unit was asked to develop a downside scenario for further expense reduction below their current budgets. This is a best practice for any organization, as unit heads should always plan for potential financial downturns. We now anticipate needing to implement many of the actions included in the downside scenarios submitted for the FY26 cycle. We will be meeting with unit heads over the next several weeks to review their submissions in depth and discuss their proposed downside actions. The budget will then be presented to the University Resources Committee, the joint committee of faculty, staff, students and senior administrators, and they will make a recommendation to President Paxson. The Corporation will vote on the budget at its May meeting.

Maintaining Compensation Increases for FY26, as Planned

In February, President Paxson announced that the Corporation had approved 3.5% salary pools for both faculty and staff in FY26, including 1% base, 1.75% merit, and 0.75% for promotions, retention and equity. As noted in that February communication, annual increases for faculty and staff may not reflect the total 3.5% designated for the salary pool due to the different components of the pools. In addition, in President Paxson’s Response to the Faculty Compensation Task Force, she asked that the Provost “establish a fund of $2.5 million that will be used to make one-time market adjustments to the compensation of longer-serving, productive faculty.” 

One of the guiding principles we have continued to underscore in our communications over the last few months is our focus on continuing to pay current faculty and staff at competitive rates. As a result, at this point in time, we are planning to proceed with implementing these increases for faculty and staff. Though this reflects our current plans for FY26 compensation, we are operating in a very fluid environment, and if we need to adjust the University’s approach, we will communicate any changes to the Brown community. But again, for now, we are moving forward with implementing the announced increases for faculty and staff. 

However, one additional step for FY26 will be a compensation freeze for members of the President’s Cabinet. President Paxson has decided that members of the President's Cabinet will not be eligible for compensation increases – base or merit – in FY26. In addition, earlier this week, we reached out to other highly compensated administrators, who are not Cabinet members, to invite them to participate in a voluntary salary freeze for FY26. In addition to this compensation freeze, President Paxson and both of us, will each be taking a 10% salary cut.

Staff Hiring Freeze and Ongoing Vacancy Review

Brown’s single largest expense is compensation for our exceptional employees. Investing in our staff is an import

ant priority, but we must focus on slowing the growth of salary and benefit costs to preserve as many current jobs as possible. Beginning in January of this year, as part of the Financial Health Initiative, we put in place new measures to closely assess open staff positions. As Brown faces increased financial challenges, managing costs through the elimination of vacant positions, and therefore minimizing the number of potential layoffs of filled positions, remains our preferred strategy. We have eliminated over 50 vacant positions since January, creating savings through attrition. 

Based on the uncertainty we now face from federal actions, we need to be more proactive in managing Brown’s expenditures.Therefore, effective immediately, we are instituting a temporary staff hiring freeze. This freeze will remain in effect through the remainder of the 2025 fiscal year. The freeze applies to all staff positions with any component of unrestricted funds. We will work with unit heads to make determinations about staff positions that are currently posted and with searches nearing completion in the recruitment pipeline. An exemption process will be in place for positions that:

• if left vacant, would have significant adverse impact on critical academic operations, research, student services and administrative functions;
• are essential to ensure compliance with regulatory and legal requirements;
• support critical infrastructure, IT or other system maintenance; and/or
• are required to ensure campus health and safety.

Staff searches approved as exceptions to the hiring freeze will use an expanded Brown First recruitment model, prioritizing internal recruitment. If a position requires specialized experience or credentials incompatible with a Brown First recruitment approach, a search process including external candidates may be approved. Additional details on this process will be provided to unit heads and HR Business Partners.

We recognize that not filling positions will pose workload challenges. We will continue to use current policies and processes to provide additional compensation to staff who are required to assume temporary additional duties that are beyond the scope of their normal job responsibilities for specified periods of time. 

One of the most impactful actions academic and administrative units can take now is to review the work performed by staff to identify opportunities to restructure operations and re-envision how services are provided. This moment provides an important opportunity to ask fresh questions about the body of work that units do, how it gets done, and what services might need to be reduced or eliminated. We have seen a number of great examples of this innovation in units that are already navigating decreased headcounts, and we are planning opportunities to share best practices and provide support to units that are undertaking this important work.

Reducing Travel and Discretionary Expenses

Travel is an area with significant unrestricted expenses across Brown, and offers an opportunity for our community to slow discretionary spending for the remainder of the fiscal year. As a result, we are putting in place an immediate freeze on non-essential travel. Essential travel is that which is contractually obligated, deemed essential because there are no alternatives for engagement or virtual options, or determined to be necessary to avoid a negative impact on core operations, research, academics, revenue generation, etc. Unit heads should ensure they are reviewing travel plans accordingly and slowing expenses to the greatest extent possible. Generally speaking, unit heads should only permit non-essential travel if it is fully paid for and refunds are not possible.

We are also directing all units to reduce, slow and/or defer other categories of discretionary spending, effective immediately. This includes reducing spending on meals, catering, events, supplies, and the use of external consultants to the fullest extent possible. These expenditures can add up across campus, and the more intentional we are in our spending decisions, the better our community can prepare for potential fiscal challenges in the months ahead. Unit heads should determine what internal processes they might use to slow these expenses. Please note that requests submitted to Senior Officers to approve exceptions to business meal and hospitality policies will generally not be granted. 

In addition to all of the actions outlined above, we continue to conduct scenario planning for various potential financial impacts emerging from federal actions. We recognize the current environment, and associated uncertainty, is very challenging and stressful. We know that engagement with our campus community, partnership in problem solving, and proactive communications will be critical throughout this time. Brown’s mission, and the impact we make in the world, is vital. This makes it essential that we undertake this important work collectively to strengthen our financial health. 

In Closing

While there continues to be significant uncertainty about the full financial impact of the ongoing volatility of the national economic landscape, it is critical that we take steps now to ensure the financial health of the University. We thank our colleagues across the University who continue to contribute thoughtful leadership and partnership as we work together to find solutions.

Our goal, now and into the future, is to position Brown to effectively advance our teaching, learning, and research mission while adhering, as best we can, to our ever true principles for financial management and continuing to treat all community members with dignity and respect. Thank you for your partnership and service to Brown as we move forward

Sincerely,

Francis J. Doyle III, Provost

Sarah Latham, Executive Vice President for Finance and Administration