Colleges and universities continue to look for ways to cut spending because of the Trump Administration’s policies towards higher education.

One June 2^nd, Johns Hopkins University announced a set of policies to prepare for a possible decline in revenue. They join a list of schools including Brown University, Duke University, Harvard University, the University of Pennsylvania, the University of Washington, and the University of California system, that have temporarily paused hiring and vow to hold off on capital spending.

Hopkins has already seen $850 million in grant cuts resulting from the culling of USAID and other program terminations, plus the school has a large number of international students (many who pay full tuition) who may be dissuaded from studying in the U.S. due to the Administration’s more restrictive visa policies.

Like a number of elite universities, Johns Hopkins relies heavily on tuition from international students attending its undergraduate and graduate programs. In the 2024-2025 academic year, over ten thousand foreign students were enrolled at Johns Hopkins according to the Institute of International Education.

In addition to the hiring freeze, University President Ron Daniels also announced a pause in annual pay increases for employees earning $80,000 or more, a slowing of capital projects by 10% to 20%, and spending cuts for travel, events, food, and supplies.

The salary freezes will likely squeeze faculty, who have seen real wages decline. From 2013 to 2023, average pay for faculty (when adjusted for inflation) has decreased by 1.5%, while administrative pay has risen by 4% for the same time frame. In addition, administrative staff positions at most universities and colleges has grown faster than faculty.

There is no doubt the universities and colleges need to take steps to address the impact of the Trump Administration’s policies. Although painful, the policies issued by Johns Hopkins and other schools are necessary in the near-term.

But a different approach is needed long-term. One that doesn’t rely on higher student tuition or faculty salaries that fall further behind inflation. These policies should include:

The Trump Administration’s policies towards colleges and their students may eventually be rolled back or reversed at some point, but in the meantime, higher education needs to rethink their budgets and what should be prioritized.