Top University administrators released a statement on Wednesday addressing the University’s ongoing “financial challenges” and updating the Cornell community on the progress of Resilient Cornell, an initiative designed to “ensure Cornell’s long-term financial sustainability,” according to its website.
The update, released by President Michael Kotlikoff, Provost Kavita Bala and Robert Harrington, provost for medical affairs, explains that the Resilient Cornell program, which launched in October, has made progress, but the University still endures financial challenges that began before last year’s federal funding cuts.
“Like many universities, Cornell is contending with uncertainty about the future of federally funded research and overhead reimbursements, international student enrollment, and limits to student borrowing,” the statement reads.
The University released a statement in June 2025 announcing “profound financial challenges” after the Trump administration froze $1 billion in federal funding for Cornell and released more than 75 stopwork orders in April 2025.
The University struck a settlement deal with the Trump administration in November to restore the funding, in which Cornell agreed to pay $30 million to the federal government and invest $30 million into agricultural research.
A research associate asked Kotlikoff at the Jan. 21 Faculty Senate meeting if the University would still suffer “from austerity measures” after the settlement. The president responded that the University “really [has] grown at a rate that is not sustainable,” specifying legal fees, and loans and tuition not being able to cover growing expenses.
“We really are at a razor’s edge in terms of our budget,” Kotlikoff said at the meeting.
In a December interview with The Sun, Wendy Wolford, vice provost of international affairs, described a slight increase in the international student population in the 2025-2026 academic year, compared to the previous year. However, she noted, “I don't know what will happen next year, but I do think that there's a real concern and a justifiable concern among international students that coming to the U.S. might not offer the security or job prospects that it once did.”
Historically, H1-B visas, a non-immigrant status awarded based on exceptional talent and merit in different fields like research, project development, helped attract international students to the U.S.
However, changes made to the H-1B visa in September that force employers to pay up to $100,000 when they sponsor an H-1B petitioner have raised concerns given that the University typically covers the cost of sponsoring students.
In addition to acknowledging the University’s financial concerns, the statement touched on its need to take action to address the financial challenges.
“Simply put, neither the federal resolution nor recent gifts alter the imperative for Cornell to implement significant structural change to our operations,” the statement reads.
In January, Cornell received its single largest gift in its history, $371.5 million, from David Duffield ’62 MBA ’64.
Wednesday’s update follows another statement published on Resilient Cornell’s website on Tuesday that explained the creation of four new work groups within the initiative.
According to the Tuesday statement, the Provost’s Steering Committee recently established four “cross-functional work groups” to minimize costs in the University’s administrative process. These four groups specifically examine the areas of marketing and communications, finance and general administration, human resources and information technology.
The Provost’s Steering Committee, founded as a part of the Resilient Cornell initiative, focuses on improving workforce design across Cornell, according to its website.
Since their creation, the four work groups have focused on “reducing unnecessary duplication, improving consistency and reliability, and stopping work that no longer supports our mission or which is financially unsustainable,” according to the Wednesday update.
The recommendations of the Provost’s Steering Committee include the design of operating models regarding the sharing of processes and resources across units, and improved efficiency within shared teams and activities, according to the Tuesday update.
The models will be tested over the next few weeks. Following these tests, the University plans to begin implementing the new procedures early this summer, according to the Wednesday update.
The Wednesday update explains that, while “cross-campus change” is necessary to address the financial struggles of the University, Resilient Cornell does not intend to do so at the expense of University employees.
“This effort is not about asking fewer people to do more and take on additional duties,” the Wednesday update reads. “Rather, it is about making — and sticking to — sustained structural changes so we can focus our time, talent, and resources on what matters most, and build the financial resilience Cornell needs to weather future disruptions without undermining our academic mission.”
Coral Platt is a member of the Class of 2029 in the College of Arts and Sciences. She is a staff writer for the News department and can be reached at cplatt@cornellsun.com.
