The University of Michigan | Susan J. Demas
The University of Michigan has begun preparing for potential budget cuts following an announcement from the Social Security Administration that it would be ending its cooperative agreements supporting the Retirement and Disability Research Consortium.
University of Michigan is one of the six institutions that make up the Consortium, which conducts policy research on Social Security’s Old-Age, Survivors, and Disability Insurance and Supplemental Security Income programs, alongside other related federal programs.
While the Social Security Administration provides funding for the Consortium, it announced on Feb. 21 that the administration would drop these agreements in order to comply with President Donald Trump’s executive order “Ending Radical and Wasteful Government DEI Programs and Preferencing.”
According to a statement from the Social Security Administration, terminating the agreements “results in about $15 million dollars in cost savings for hardworking Americans in fiscal year 2025.”
In a statement issued on Wednesday, University of Michigan President Santa J. Ono announced that the university would begin taking steps to prepare for potential federal funding cuts.
“This week, the university received legal notice from a federal agency instructing us to stop work on a multimillion-dollar project. We expect this is the first of what will likely be many orders, the combined impact of which could have significant repercussions on the university’s budget. As a result, we are announcing several important new requirements involving hiring, budgets and spending, which will be effective immediately,” the letter reads.
While Ono did not specify which project, U of M Regent Jordan Acker confirmed for Michigan Advance that Ono was referencing the Social Security Administration’s decision to end support for the Retirement and Disability Research Consortium, which supports the Michigan Retirement and Disability Research Center.
In an emailed statement, University Spokesperson Kay Jarvis said U of M is carefully reviewing executive orders and other federal guidance, including funding changes, to understand their implications, noting the University was regularly updating its page on updates related to federal orders, memos and agency guidance.
“Nothing further to share at this time,” Jarvis said.
As part of the measure taken in response to federal budget cuts, the university would be implementing a new hiring review process where the deans and executive officers will recommend all new hires and the president or executive vice presidents will review them. Approval will be required for replacement and incremental positions, alongside temporary and contract staff.
The University will honor outstanding job offers made up to Feb. 26. Michigan Medicine teams were advised to use their existing review process.
Non-payroll expenditures in excess of $50K must be reviewed for a decision by the president or executive vice presidents.
“Approvals will be in writing and must be included with your requisition, sourcing or contract request to procurement services. We are also asking units to voluntarily review other non-essential spending — such as travel, conferences and consultants — to achieve additional savings,” Ono’s announcement reads.
The university will also reexamine its capital projects, including new buildings, renovations and other infrastructure projects. Projects requiring approval from the Board of Regents will continue to be reviewed by the U of M’s Capital Council, while projects that are currently in progress will continue.
University of Michigan Medical will be subject to separate guidance with Ono instructing faculty and staff to watch for a forthcoming communication.
GET THE MORNING HEADLINES.