Stanford University to eliminate 363 workers as federal funding cuts, tax hikes hit home

Stanford University plans to eliminate 363 positions as part of a $140 million budget cut for the 2025-26 academic year, driven by reduced federal research support and a new 8% tax on net investment income for universities with endowments exceeding $2 million per eligible student. University president Jonathan Levin and provost Jenny Martinez acknowledged the uncertainty surrounding federal funding for higher education, stressing the need for realistic adjustments. Local leaders, including San Mateo County Board of Supervisors president David Canepa, criticized the layoffs as a direct consequence of the One Big Beautiful Bill Act, which they argue prioritizes politics over the welfare of workers. Canepa stated that the cuts would negatively impact the local economy and families already struggling financially. In response to the layoffs, Stanford plans to offer support resources and benefits to eligible employees.

Levin and Martinez expressed appreciation for the contributions of affected staff, acknowledging the challenges these actions create. The university's decision reflects broader trends in federal policy affecting educational institutions across the country. As federal funding remains uncertain, Stanford's actions may signal similar challenges for other universities.