University of Missouri leader Choi says federal cuts require trimming budget

COLUMBIA, Mo. (KMIZ)

The president of the University of Missouri warned Monday of budget cuts coming because of a pullback of federal funding.

UM System President Mun Choi wrote in a letter to staff that the current fiscal year budget will be trimmed, citing a change to research funding from the National Institutes of Health and other federal dollars for the Columbia campus being frozen.

"As I write this letter, I’m very hopeful and excited about our future. But, there are some challenges on the horizon," Choi wrote. "One of the challenges is the reduction in indirect cost returns as well as cancellation of specific federal projects.

"In the coming weeks, we will begin reducing expenses for this fiscal year (FY25) in the Offices of the president/chancellor, vice chancellors/vice provosts and deans. We’ll work closely with the leaders to take actions that will best support our teaching, research and engagement priorities."

The MU fiscal year ends June 30.

Trump administration changes to NIH funding have shaken research university budgets nationwide. The administration is seeking reductions to the federal share of indirect costs for things such as facilities and utilities. MU received nearly $70 million in NIH funding last fiscal year.

MU has received nearly $10 million in NIH funding this fiscal year.

Choi wrote that the cuts will likely also affect the budget for the coming fiscal year, which begins July 1.

Choi also called back to major budget cuts the university has weathered over the past decade.

"With your leadership and support, we were able to overcome much greater challenges during the past 10 years," Choi wrote. "I’m also encouraged in knowing that we are in a much better position to weather the financial challenges given our strong footing, with positive enrollments, growing state support and profitable entrepreneurial programs."

Provost and Executive Vice Chancellor for Academic Affairs Matthew Martens said the university is preparing for any scenario and may look at open positions within the university.

"An expectation for the units is to evaluate open positions and potentially delay those positions if in fact it's necessary. at this point we have not discussed a hiring freeze," Martens said.

The university also said its strategic plan compared to years past when budget cuts took place will be different if the budget cuts take place but they will look at key areas within the university.

"Identify those areas where we would have to reduce spending we certainly look to align with our strategic priorities, related to student  success, related increasing research activity and those sorts of things," Martens said.

A university spokesperson said in a statement Monday afternoon:

"The University of Missouri has significant momentum and has many reasons to be optimistic about the future – from our record graduation and student success rates to the high value we provide our students and to the state of Missouri. As a precaution, due to proposed federal funding changes, we are conducting a focused review of our operations. No actions we take because of this review will hinder efforts to support our mission of teaching, research and engagement."

State higher ed funding in committee

The Missouri House Budget Committee will take up a bill to fund higher education for fiscal 2026 on Monday afternoon.

The bill includes Gov. Mike Kehoe's recommendation for a 1.5% increase in core funding for state universities. Last year the university received a 3% increase.

Kehoe made a recommendation in his first State of the State address last month for the University of Missouri System to received $559 million for fiscal year 2026.

The money would go towards things like special projects, infrastructure, overall operations and more.

House Bill 3 also includes a $16.8 million for higher education institutions and that includes a 1.5% increase in core funding for all four-year universities, community colleges and State Technical College of Missouri.

However, that is compared to a 3% increase in core funding for fiscal year 2025.

President and CEO of the Missouri Community Colleges Association Brian Millner said he would like to see core funding at 3%.

"You won't catch me saying anything disparaging about our university partners we need fund public higher education its absolutely crucial to the workforce and the development," Millner said. "Our request to you is to consider the three-percent for the community colleges that's about 3-and-a-half million dollars."

No one in Monday's hearing opposed the bill. It is still in its early stages and further discussion are expected to take place.

The Missouri General Assembly has until May to finalize the budget.