The following message from UH President Wendy Hensel was sent to the students, faculty and staff of the 10 campuses on May 2, 2025.
Aloha UH ʻohana,
I write today with two major updates from Washington, D.C., that further underscore the growing challenges facing public higher education and research in the United States.
NSF Indirect Cost Recovery Cap
First, the National Science Foundation (NSF) announced it will cap indirect cost recovery at 15% for all new grants awarded on or after May 5, 2025. While the policy does not apply retroactively, it will significantly reduce the ability of universities—including UH—to conduct research. Indirect costs typically cover utilities, building maintenance, staffing, compliance and other related expenses and currently average around 50%. This move follows similar 15% caps announced by the National Institutes of Health (NIH) and the Department of Energy (DOE). Injunctions are in place for the NIH and DOE policies, but the trend is clear and deeply concerning. These changes build on earlier actions, including the March 20 Executive Order to dismantle the U.S. Department of Education.
We also understand that another wave of grant cancellations is expected to begin today, adding to the disruption already being experienced here at UH and by universities across the country.
Proposed budget cuts
Second, the Trump administration released its proposed federal budget today, which includes an approximately 50% cut to NSF funding and 40% reduction to the NIH budget. These two agencies are cornerstones of global research. Cuts of this magnitude will undermine the future of science and innovation in this country. This budget is among the most damaging to higher education in recent memory. We remain hopeful that Congress will work to reverse these proposed reductions.
East-West Center
The effects of these actions are already being felt here in Hawaiʻi. The East-West Center, located next to the UH Mānoa campus and funded primarily by the federal government, is reportedly offering voluntary buyouts to 80% of its 137 employees amid funding uncertainty. A hiring freeze and cuts to nonessential spending have been in place since February, and several programs have been postponed or canceled. As the center prepares to mark its 65th anniversary this month, the situation serves as a sobering reminder of how federal decisions reverberate through institutions committed to education, diplomacy and research.
What we are doing
These developments reinforce the urgency of continued coordination, communication and advocacy. We will continue to work closely with Hawaiʻi’s congressional delegation, Gov. Green, the Legislature, the state attorney general and national higher education associations to push back on these harmful policies. I also continue to meet regularly with the UH Presidential Advisory Council on Federal Policy and our leadership teams to guide our collective response and plan for budgetary contingencies. More information and resources can be found on the Federal Policy Updates and Resources website that is updated regularly.
Through it all, our values remain unchanged. UH will continue to stand for accessible education, academic freedom and the pursuit of knowledge in service to Hawaiʻi and the world. I will continue to provide updates as new developments emerge. Mahalo for your resilience and dedication to our mission.
With aloha,
Wendy Hensel
President, University of Hawaiʻi
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