NC State pauses hiring, citing Trump orders and financial uncertainty
NC State University paused all hiring actions Friday in colleges and units that report to the university’s Office of the Provost, citing federal uncertainty and financial concerns.
The hiring freeze extends to all 10 of the university’s colleges.
Executive Vice Chancellor Warwick Arden also said colleges and units should conserve funds for indirect costs in case they are needed for those affected by lost grant funding.
In a memorandum on Friday to all college deans, senior vice provosts and vice provosts, Arden pointed to uncertainty over the impacts of executive orders by President Donald Trump and guidance from his administration, along with the potential for a federal government shutdown by mid-March and financial challenges at the state level.
The Trump administration has approved multiple executive orders, some of which halt federal grants and funding to college campuses.
This included a pause on federal research grant funding, which was later blocked by courts.
The Trump administration also put new limits on grants provided by the National Institutes of Health. Those grants cover both direct and indirect costs. Under a new rule, which was also blocked in court, a flat 15% rate for all “indirect” payments for administrative costs, such as building maintenance, would have been implemented.
“Leadership is becoming increasingly concerned with our budgets over the next year or two,” Arden wrote.
Arden wrote that exceptions to the hiring pause would be considered on a case-by-case basis and that student workers, graduate appointments, part-time and temporary employees were not affected.
He also wrote that colleges would be allowed to hold on to some unused money tied to certain indirect expenses such as facility maintenance, utilities, and administrative services. He advised conserving those funds to support faculty, students, and staff affected by grant funding losses, with spending requests requiring case-by-case approval.
“In closing, I also encourage you to be conservative in the use of all your funds given the challenging financial climate we currently find ourselves in,” Arden wrote.
Gov. Josh Stein issued a statement Friday in response to the state’s latest revenue forecast, warning that while the forecast this year was positive, “North Carolina is approaching a fiscal cliff that threatens our ability to invest in rebuilding western North Carolina, strong public schools, people’s health, infrastructure, and other services we need to make North Carolina safer and stronger.”
“With a growing economy and population, it doesn’t have to be this way. I am committed to working with the legislature to develop solutions that allow us to continue to invest in our state’s future,” Stein said.
In just over a month, federal government funding expires. If a new spending plan is not approved, then the government shuts down.
