Harvard University Announces Layoffs at Engineering School Amid Federal Funding Challenges and Policy Shifts

Harvard University, America's oldest and wealthiest educational institution, has announced staff layoffs at its engineering school due to ongoing financial challenges and changing federal policies affecting higher education funding.

In a statement released Thursday, David Parkes, dean of the John A. Paulson School of Engineering and Applied Sciences, explained the difficult decision: "New federal policies, including a forthcoming increase to the endowment tax, and an expected reduction in indirect recovery rates and changes to the allocation of research funding, have signaled the start of a fundamental shift in the relationship between research universities and the federal government."

The dean emphasized that these shifts are creating "enormous financial pressure" on Harvard's various schools and similar institutions nationwide, necessitating workforce reductions to address budgetary shortfalls.

According to initial reporting by The Boston Globe, approximately 40 staff members will be affected by the layoffs. When contacted, a spokesperson for the engineering school declined to confirm the specific number of positions being eliminated.

Despite possessing a $53 billion endowment, Harvard has been engaged in an ongoing conflict with the Trump administration, which earlier this year froze more than $2 billion in research funding for the university.

The tensions began following Hamas' October 2023 attack on Israel, with the White House accusing Harvard of allowing antisemitism on campus. These criticisms later expanded to include allegations of political bias, scrutiny of Harvard's connections to China, and opposition to the university's diversity initiatives.

Last month, President Donald Trump suggested that a resolution to the dispute was imminent, potentially involving Harvard paying approximately $500 million and operating trade schools. "All you have to do is paper it," Trump told Education Secretary Linda McMahon during a late September Oval Office meeting. However, no formal agreement has been announced yet.

Harvard did secure a significant legal victory when a judge ruled that the government had violated the university's free speech rights by withholding billions in research funding. Although the administration has indicated it will appeal this decision, approximately $46 million in previously suspended funds have begun to flow back to Harvard.

The engineering school is particularly vulnerable to these funding disruptions, as 37% of its operating revenue comes from sponsored support, primarily from federal government sources, according to Harvard's most recent financial report.