A message from UC President Michael V. Drake on the University of California’s financial outlook

To the University of California Community,

Over the last few months, the new administration in Washington, D.C., has announced a number of executive orders and proposed policy changes, including ones that threaten funding for lifesaving research, patient care, and education support. These actions affect colleges and universities across the country. Additionally, the 2025-26 California state budget calls for a substantial cut to the University’s budget. As one of the most innovative, research-focused public institutions in the nation, these proposed changes would have a particularly profound impact on the University of California.

UC leaders and I are advocating strongly for and collaborating with state and federal elected officials on the University’s mission and priorities, alongside our higher education partners across the nation. The University’s legal team prepared for this moment and has been working diligently to protect the University and our mission through the courts. We will continue to pursue all appropriate actions and advocacy options available to us moving forward.

These efforts have allowed us to stave off some of the immediate and projected financial impacts — but not all. As we face funding reductions at both the state and federal levels, the Chancellors and I are preparing for significant financial challenges ahead. Today, I write to share several steps we are taking to protect the University and try to ensure its solid financial footing in the long term.

First, we will implement a systemwide hiring freeze to help the University manage costs and conserve funds. I have directed every UC location, including the Office of the President, to prepare financial strategies and workforce management plans that address any potential shortfalls. I have also directed all UC locations to implement cost-saving measures, such as delaying maintenance and reducing business travel where possible. Because every UC location is different, these plans will vary accordingly. But regardless of UC location, every action that impacts our University and our workforce will only be taken after serious and deliberative consideration.

I recognize this is a time of great uncertainty for many in our UC community and in higher education across the country. Throughout our history as an institution and as a nation, we have weathered struggles and found new ways to show up for the people we serve. We will address these challenges, together. I have tremendous confidence in the team that is working on these issues, and in the dedication of our students, faculty, and staff. 

Thank you for your continued dedication and service to this institution. The University of California has been a beacon of new knowledge and public service for more than 150 years, and I am truly grateful for all that you do, each day, to continue that legacy.

Sincerely,

Michael V. Drake, M.D.
UC President