Chancellor’s Mid-Year Update

Chancellor’s Mid-Year Update

An update on the federal government’s policy changes, their impact on UCSF, and our plans to ensure that the excellence of our integrated research, education, and health care mission endures.

Dear UCSF Community,

As you are aware, the federal government’s policy agenda has created significant uncertainty for universities and colleges since the start of the year.  I’m writing to update you on these policy changes, their impact on UCSF, and our plans to ensure that the excellence of our integrated research, education, and health care mission endures.

I want you to know that we continue to advocate vigorously in Washington, D.C. and in federal court for the preservation of our federal research support, which has for 80 years fueled American primacy in science.  However, we must be mindful about the challenges ahead and continue taking thoughtful steps.

Changes in the federal government’s research priorities appear to have led to award terminations and cancellations at UCSF, creating substantial financial headwinds and job losses.  Later this year, we may face additional funding reductions as Congress determines the National Institutes of Health’s budget and a new method for calculating Facilities and Administrative (F&A) costs, which cover essential research expenses such as lab facilities and computing power.

To address UCSF’s financial challenges, I asked the schools and the administrative units reporting to the Office of the Chancellor to implement a 5% reduction in allocations from the Campus Core Financial Plan, in addition to the hiring freeze announced in March.  As a result, some leaders have had to make limited reductions in staff positions across the campus.  Our difficulties also extend to our health system.  UCSF Health recently made the tough decision to reduce its workforce by about 1% to address serious financial pressures and protect our ability to care for patients in the years ahead.

Another challenge facing academic institutions are the federal investigations related to such issues as Diversity, Equity, and Inclusion programs, hiring practices, and efforts to address antisemitism.  The University of California and its 10 campuses are the subject of similar investigations, as media reports have described.  While the ultimate outcome of these investigations has yet to be determined, we’re actively planning for scenarios that might affect our financial future.

We have carefully examined our programs, policies, and practices, and believe we are fully compliant with both state and federal laws.  UCSF has been, as we always seek to be, a place that welcomes and serves all, and we must not back away from that foundational commitment.  We continually look for ways to reinforce our values and compliance, and we’ll share any adjustments we may be making in a future communication.

I want to acknowledge the importance of this conversation for our community.  It speaks to our mission and our values.  As we face our challenges, let’s remember what truly grounds us at UCSF—the incredible work we do every day to push the possibilities of research, educate tomorrow’s health and science leaders, and improve the lives of our patients through innovative medicine.  This is the shared purpose that unites us as one UCSF.

I will continue to keep you updated as we learn more.  In the meantime, thank you for your commitment to our mission and your understanding.

Sincerely,

Sam Hawgood, MBBS
Chancellor
Arthur and Toni Rembe Rock Distinguished Professor