Cornell University is grappling with a significant financial challenge, facing a total of $330 million in withheld and cut federal funding. University President Michael Kotlikoff and Provost Kavita Bala detailed the situation, explaining that the figure includes $250 million from ongoing stop-work orders and grant terminations, plus an additional $80 million in unreimbursed expenses for completed research.
Key Takeaways
- Cornell University reports a total financial impact of approximately $330 million from federal funding issues.
- This includes $250 million in stop-work orders and grant terminations, plus an additional $80 million in unpaid reimbursements.
- University officials state they have not received a formal letter from the Trump administration explaining the funding freeze.
- President Kotlikoff affirmed Cornell would not compromise on institutional autonomy over admissions, hiring, or internal policies in any settlement talks.
- The university is also addressing internal challenges, including campus free speech, sexual assault prevention, and the integration of artificial intelligence.
Financial Strain from Federal Funding Freeze
Cornell University's leadership has provided an update on the institution's financial pressures stemming from actions by the federal government. The university is managing two primary financial issues: direct stop-work orders on research projects and a failure by the government to reimburse the university for expenses on active grants.
Unpaid Grants and Stop-Work Orders
According to President Michael Kotlikoff, the financial impact is substantial. The initial $250 million figure, which includes both stop-work orders and terminated grants, remains largely unchanged since May. "The ones that were stopped stayed stopped," Provost Kavita Bala confirmed.
In addition to this, the university is owed approximately $80 million for programs where expenditures have been made but not reimbursed by the federal government. This brings the total financial shortfall to around $330 million. These unreimbursed grants include projects funded by the National Institutes of Health (NIH) and the United States Department of Agriculture (USDA), which the university is currently backstopping to ensure research continues.
By the Numbers
- $250 Million: The total value of research projects affected by stop-work orders and grant terminations.
- $80 Million: The amount owed to Cornell for expenses on federally approved grants that have not been reimbursed.
- $330 Million: The combined financial impact on the university from these federal actions.
To manage the disruption, the university has established internal support systems. "There is a Provost’s [Research] Resiliency Fund, which we use that to give... a small amount of bridge funding to the terminated grants," Bala stated. She added that individual colleges and departments are also providing financial support for affected projects and graduate students.
Navigating Legal and Political Challenges
Cornell's administration is actively engaged in discussions to resolve the funding situation while navigating a complex legal and political landscape. This includes ongoing talks with the administration, increased lobbying efforts, and managing several investigations by the Office for Civil Rights (OCR).
Settlement Negotiations and University Autonomy
Recent media reports suggested Cornell was close to a $100 million settlement with the Trump administration, but President Kotlikoff disputed this. "That information certainly did not come from Cornell... I wouldn't agree that we're necessarily very close to a settlement, and I wouldn't agree with a number that was published," he said.
Kotlikoff emphasized that the university would not cede control over its core functions. He drew a clear line regarding potential settlement terms seen at other institutions.
"The notion that the federal government would control the University's policies, would tell us how to enforce our policies, how we hire people, who we hire, how we admit students, who we admit — that is all beyond the appropriate relationship between the federal government and the University."
Unlike Harvard University, which successfully sued the administration, Cornell has not pursued a similar legal path because it never received a formal letter outlining the reasons for the funding freeze. Kotlikoff noted that Cornell's primary legal recourse would be the Court of Claims, a slower process that the university has not yet initiated.
Increased Lobbying and Federal Scrutiny
In response to the financial pressures and policy challenges, Cornell has significantly increased its federal lobbying expenditures. The university spent $444,000 on federal lobbying in the second quarter of 2025, a 69% increase compared to the same period in 2024. Kotlikoff explained these efforts are aimed at communicating Cornell's position on issues like the endowment tax and its commitment to non-discrimination.
Ongoing OCR Investigations
The U.S. Department of Education's Office for Civil Rights (OCR) has several ongoing Title VI investigations involving Cornell. These relate to allegations of discrimination concerning the Ph.D. Project and concerns about the protection of Jewish students on campus. The university maintains it has complied with the law and is working to resolve these complaints.
Internal Policies and Campus Controversies
Beyond federal relations, Cornell's leaders addressed several key campus issues, including reorganizations, free speech debates, and student safety initiatives.
Reorganization and Name Changes
The university recently restructured its Title IX enforcement by creating the Office of Civil Rights, replacing the Office of Institutional Equity and Title IX. Kotlikoff described this as a reorganization to more effectively handle both Title IX and Title VI legal requirements. Separately, the Office of Academic Diversity Initiatives was renamed the Office of Academic Discovery and Impact. Provost Bala clarified this was an internal decision by the unit itself and not a result of external pressure.
Free Speech and Campus Climate
Cornell has faced criticism regarding its campus climate for free expression, receiving a low ranking from the Foundation for Individual Rights and Expression (FIRE). One incident cited was the cancellation of a performer for the annual "Slope Day" event due to antisemitic views expressed on social media. Kotlikoff defended the decision, framing it as a matter of community inclusivity rather than a restriction on speech.
"What we were trying to do was not have an entertainment choice that a significant segment of our community felt was offensive and therefore wouldn't attend," he stated. He added that the university remains committed to free expression and academic freedom.
Addressing Sexual Assault on Campus
The university's Presidential Task Force on Campus Sexual Assault is nearing the completion of its work. Provost Bala said the task force has been consulting with students and staff to develop preventative measures. "They're thinking exactly about the kinds of educational offerings we need to consider... so that we can take preventative approaches," she said. A report with recommendations is expected by the end of the semester.
University's Vision for the Future
Amid these challenges, Cornell's leadership is also focused on long-term strategy, particularly concerning the role of artificial intelligence and the future of higher education.
Embracing Artificial Intelligence
Provost Bala outlined Cornell's comprehensive AI initiative, which is built on three pillars: research, education, and administration. The goal is to advance AI research, promote AI literacy across all disciplines for students and faculty, and use AI tools to improve university operations.
"Our motto there, which this group has come up with, it's ‘AI on tap, not AI on top,’" Bala explained. "We want AI to serve our goals in each of these pillars." Projects range from using AI for scientific discovery to developing generative AI tools to streamline administrative workflows.
Committee on the Future of the American University
Provost Bala also announced the formation of the Committee on the Future of the American University. She described it as a "think tank" tasked with exploring the significant challenges facing higher education, including a decline in public trust and a shifting relationship with the government.
"We are at a moment of also a tremendous change because of technological change, scientific discovery, technologies — like AI," Bala said. The committee will engage with both supporters and skeptics to consider how Cornell can navigate the next 50 years and reaffirm its core missions of education, research, and public engagement.
