LOS ANGELES — Facing uncertainty in federal funding, USC administrators Monday announced a series of financial austerity measures — including a staff hiring freeze and restrictions on faculty hiring.

"As you are aware, colleges and universities across the nation are facing tremendous scrutiny and financial stress due to federal funding uncertainty, cuts, increased costs, and other risks," university leaders including President Carol Folt wrote in an online message to the USC community.

"Like other major research institutions, USC relies on significant amounts of federal funding to carry out our mission. In fiscal year 2024, for example, we received approximately $1.35 billion in federal funding, including roughly $650 million in student financial aid and $569 million for federally funded research. The health system also receives Medicare, Medicaid, and Medi- Cal payments — a significant portion of its revenues — and the futures of those funds are similarly uncertain."

The USC leaders noted that the university has already made cuts to reduce a structure deficit, but said more steps are needed "to increase our financial resilience in the face of exceptional financial uncertainty."

Those steps will include a staff hiring freeze, curtailment of faculty hiring, a thorough review of procurement contracts of $50,000 or more, a reassessment of capital projects to identify those that could be deferred or paused, restrictions on discretionary spending such as conferences and non- essential business travel, and an elimination of most merit increases for the 2024 performance cycle.

"We understand the impact that these decisions have for our dedicated faculty and staff and want to assure you they were not made lightly," the administrators wrote. "As things continue to evolve at the federal and local level, we will regularly assess how we are progressing and whether further actions or adjustments are needed.

"We remain optimistic that these measures will not only allow us to weather the current storm, but also place the university on a stronger footing for many generations to come. Our mission as a university has never been more urgently needed. Senior leaders across the university have been advocating in a variety of fora, including in Washington, D.C., and will continue to advocate on behalf of the vital work that each of you performs. We are grateful for your continued dedication as we navigate these uncertain times."