Thursday, August 28, 2025
Dear Yale Faculty and Staff Colleagues,
Welcome to the start of a new academic year. As the fall semester begins, we understand you may have questions about the university’s financial outlook and budget planning, particularly given the increased endowment tax legislation passed by the federal government this summer. As President McInnis wrote in her July 3 message, this legislation includes an endowment tax of 8% on Yale, beginning July 1, 2026, which marks a substantial increase from the current 1.4% tax. It will require Yale to pay the federal government money that would otherwise support students, faculty, staff, and partnerships in our home city of New Haven.
Throughout the spring and summer, we have worked with colleagues across Yale to plan for the financial impacts of the increased endowment tax and other federal actions. Over the next few weeks, we will finalize additional strategies that will preserve our ability to fulfill Yale’s mission in both the near and long term. We expect to share another update, similar to our June communication, in late September. For now, the ninety-day hiring pause that began on July 1 remains in effect, and schools and units are adhering to the budgets they revised this spring. These actions continue to give us flexibility as we adjust to new financial circumstances impacting Yale and other institutions across the country.
Though this is a period of great uncertainty in American higher education, we are continuously impressed by the resolve of the Yale community. Thank you for remaining dedicated to Yale’s mission to improve the world today and for future generations. University leaders, faculty, and staff will continue to advocate for your crucial contributions.
We look forward to updating you again next month.
Sincerely,
Scott Strobel
Provost and Henry Ford II Professor of Molecular Biophysics and Biochemistry
Jack Callahan, Jr.
Senior Vice President for Operations
Stephen Murphy
Vice President for Finance and Chief Financial Officer