Duke University cuts $299 million through buyouts and building closures amid US federal funding reductions
Duke University has cut $299 million in spending through staff buyouts and building closures as it responds to reductions in US federal funding that have affected higher education institutions nationwide.The measures follow policy changes introduced after President Donald Trump’s inauguration, which reshaped federal support for universities, healthcare systems and research programmes across the country.Federal funding pressures and early responsesIn February, the administration sought to cap Facilities and Administrative reimbursement rates for grants funded through agencies such as the National Institutes of Health and the National Science Foundation at 15%, down from levels of around 60%, a move that remains blocked in the courts.According to university estimates, the change to F&A rates alone would cost Duke about $194 million annually, prompting President Vincent Price to announce a cost reduction programme including a hiring freeze, administrative reviews and cuts to non-personnel spending.Price said the university must prepare for diminished federal support, saying Duke could no longer rely on resources it had enjoyed in the past, Price quoted by the Associated Press during his annual address to faculty.Buyouts, layoffs and faculty changesIn April, administrators warned that employment action was unavoidable, and weeks later launched a voluntary separation incentive programme offering buyouts to eligible staff across departments.Out of 939 staff offered packages, 599 accepted, representing about 5% of Duke’s full-time workforce, while administrators said involuntary layoffs would follow if participation proved insufficient.By September, 45 employees had been laid off, with Price saying the institution would have to operate with fewer people for the foreseeable future, Price in conversation with the Associated Press.Faculty were also affected after a retirement incentive programme drew 82 participants from 273 eligible academics, while the School of Medicine proposed salary reductions for underperforming tenured staff.Closures, campus impact and financesThe School of Medicine decommissioned the Jones Research Building as part of its own plan to cut $125 million in annual expenditure linked to reduced NIH funding.When students returned, they encountered fewer advisers and reduced library support, changes that administrators acknowledged required clearer communication about finances and operations.Duke now expects a $74 million surplus for the fiscal year 2026, with finance leaders saying the cost cutting has left the university better positioned, Ennis quoted by the Associated Press during an Academic Council meeting.Administrators said the focus is shifting toward strategic realignment, reallocating resources to priority areas while operating a smaller institution, a direction outlined by senior leaders during budget discussions with faculty. The approach follows months of savings across departments and schools, consolidating earlier measures into longer term financial planning efforts ongoing.
