University of Southern California Faces $300 Million in Federal Funding Cuts, Staff Layoffs

The university received about $1.35 billion in federal funding last year.

Faculty members join pro-Palestinian students as they protest the Israel–Hamas war on the campus of the University of Southern California, in Los Angeles, on April 24, 2024. Frederic J. Brown/AFP via Getty Images

The University of Southern California (USC) faces a potential revenue loss of hundreds of millions of dollars in federal funds and staff layoffs amid a “volatile external environment,” Interim President Beong-Soo Kim said in a July 14 letter addressed to faculty members.

Since President Donald Trump began his term in office in January, his administration has sought to implement policy changes in the nation’s educational institutions, opposing males’ participation in women’s sports; anti-Semitism on campus; and diversity, equity, and inclusion (DEI) programs. Federal funding is now contingent upon institutions aligning with the administration’s policies.