Recent Federal Actions and UC Coordinated Response

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A Message From Chancellor Pradeep K. Khosla:

Dear Triton Community,

At UC San Diego, the work we do is vital. We are committed to educating future leaders, training a qualified workforce, and driving groundbreaking, life-saving, world-changing research. The long-standing research partnership between the federal government and universities has empowered massive advances in knowledge and discovery that improve lives and propel society forward. Due to the recent and proposed changes to federal research funding policies related to indirect cost recovery – changes that could result in a more than $150 million reduction to UC San Diego annually – the productivity of this partnership is at risk.  

This is a fast-moving and complex situation with wide-ranging implications for our campus, our community, and each of us. Navigating the stream of rapidly changing, and perhaps confusing, policy directives and the uncertainty about the future has been challenging for many, to say the least. We recognize that members of our community are experiencing heightened stress and anxiety as a result, and that it may be tough for many to focus amidst all of the uncertainty.

I want to reassure you that we are fully engaged and working together across campus, across the UC system, and beyond, to address these issues on several fronts. My leadership team and I are in constant communication with key partners. We continue to closely monitor and strategize our response. We are actively advocating for the university, our globally recognized and life-saving research enterprise, and every member of our community. 

As your Chancellor, I wanted to take a moment to provide updates, share resources, and reinforce my unwavering support and advocacy for our university – and each of you.     

Updates on Recent Federal and State Budget Actions 

In addition to several executive orders and funding agency staffing cuts that profoundly impact higher education, the National Institutes of Health (NIH) recently announced a significant policy change, imposing a 15% cap on indirect cost reimbursements (IDC) for Facility and Administration (F&A) costs associated with research grants. In FY 2024, the NIH reimbursed UC San Diego approximately $210 million for F&A expenses. These funds play a critical role in partially reimbursing for costs associated with the substantial infrastructure, specialized equipment and support services – including IT, lab space, utilities and equipment – that are necessary to facilitate and support cutting-edge research.  

In essence, F&A funds are the backbone of medical research, empowering the development of life-saving treatments and advancements in healthcare. By helping to offset the substantial costs of maintaining a robust research environment, F&A funds from the long-standing partnership between the federal government and universities drive innovation, improve human health, and save lives. 

While a federal court has temporarily paused implementation, such cuts would have a significant impact on our research mission, our regional economy and workforce, higher education as a whole, and our ability as a nation to lead and compete in science and technology on the global stage. Implementation of this policy would result in the annual loss of more than $150 million in indirect cost reimbursements at UC San Diego alone. It is possible that other funding agencies will adopt NIH’s policy on IDC caps, which would result in even deeper cuts.  

This announcement from the NIH is just one of many developments that could negatively impact our education, clinical care and research mission, as well as members of our community. At the state level, we are anticipating the deferral of our compact funding plus an approximately 8% budget cut, which will impact UC campuses statewide. We are continuing to monitor other announcements and developments and will provide further updates when they are available. 

UC San Diego Response and Coordination 

Our UC San Diego leadership team is actively engaged and working tirelessly to monitor rapidly changing policies, ascertain the implications of the changes, shape our responses, and provide guidance and resources to our community.  

The University of California Office of the President (UCOP) is leading a coordinated systemwide effort. Together we will continue to advocate for legislation, policies and programs that reflect our values, support our mission and benefit all members of our community. We are closely collaborating with all UC campuses and health systems, policymakers, federal agencies, and our higher education association partners, among others. 

As part of this effort, UCOP has created a targeted campaign that makes it simple to advocate for the safeguarding of NIH funding and scientific research. We encourage you to participate. 

Financial Planning and Cost-Saving Measures

Given the potential for financial impacts as a result of anticipated federal and state budget cuts, we are creating contingency plans to address potential deficits and taking steps to reduce expenditures. At this time, as shared at a university leadership meeting with vice chancellors, deans, the Academic Senate, provosts, MSOs and others this week, a hiring pause has been implemented for core-funded faculty and staff positions. Separate communications about logistics and parameters will be provided, and additional measures may be enacted if deemed necessary. The specific planning for the real and potential impacts is being communicated by the Campus Budget Office to each financial officer. For further guidance, please consult with your dean or vice chancellor. 

We are doing all we can to minimize any negative impacts as we fulfill our teaching, research and clinical missions. As updates become available, we will keep our community informed and continue our advocacy against drastic budget cuts at the federal and state levels.

How You Can Take Action

I continue to hear from many in our community, including students, faculty and staff, asking how they can take action to support our work and advocate for continued funding. Here are some options:

• Join the UC Advocacy Network and help protect life-saving research by contacting your representatives. 
• Use this toolkit to raise awareness on your social media and share your story about the impact of NIH-funded research. You can also invite others to join the campaign. 
• Share any media inquiries you receive with your unit’s media contact or send them to marcom@ucsd.edu. 

Stay Informed on Key Federal Updates 

It’s important to stay informed about policies that can impact our university community and everyone in it. We encourage you to frequently monitor the following resources for updates: 

• UC Federal Updates website
• UC San Diego Federal Updates website
• UC San Diego Health Federal Updates website (login required)

Support Resources

As we navigate these challenges, while we encourage you to stay informed, we also want to remind you to take care of yourself and each other. This is a stressful and uncertain time for many, and we encourage you to reach out for support.  

• Students may access Counseling and Psychological Services (CAPS) by calling 858-534-3755 or visiting caps.ucsd.edu.
• The Faculty and Staff Assistance Program offers counseling appointments for all faculty and staff members. 
• The UC Behavioral Health Benefits page on UCnet includes helpful resources and contacts for accessing mental health services. 
• UC San Diego Health team members can call 866-808-6205 (use company code UCSDMC) or review the Employee Assistance Program page on the HHR website. Check Team Member Well-Being Resources on Pulse for the latest wellness events and information. 
• UC San Diego Health hospital chaplains are also available for health team members. Call 619-290-1560 or dial “0” to reach the hospital operator and request the on-call chaplain. See the Spiritual Care page on Pulse for more details.

Moving Forward

We will continue to actively engage the public and work hard to raise awareness of these key issues, protect our institution and our people, and advance the future of the United States’ science and technology leadership. As President Drake has reaffirmed, our mission and values have not changed. We support each member of our Triton community, and we value the incredible work we accomplish together to benefit society as a whole. 

Thank you for your dedication to our university. We are in this together – and collectively, we can make a difference.

Sincerely,

Pradeep K. Khosla
Chancellor
Joan and Irwin Jacobs Chancellor’s Endowed Chair