U-M squeezed by Trump cuts; Social Security research project halted

The Trump administration has halted a $15 million Social Security study that involved the University of Michigan, whose president warns more cuts are likely that will have "serious repercussions" on the school's budget.

The Social Security Administration announced Friday it was ending cooperative agreements with research centers “addressing DEI in Social Security, retirement, and disability policy.”

The Michigan Retirement and Disability Research Center at U-M is one of six Social Security Administration-funded centers that form the Retirement and Disability Research Consortium that conducts research on retirement, disability and social policy.  

“Terminating these cooperative agreements results in about $15 million dollars in cost savings for hardworking Americans in fiscal year 2025,” the Social Security Administration said in a news release. 

On Wednesday, U-M President Santa Ono wrote a letter to faculty and staff saying the university had “received legal notice from a federal agency instructing us to stop work on a multimillion-dollar project.” 

He did not specify which program. 

When asked what project Ono was referring to, two university regents,  Michael Behm and Sarah Hubbard, told Bridge Michigan it involved the Social Security Administration’s decision to end the research contracts.

The University of Michigan public affairs team could not be immediately reached for comment, but Bridge has requested details on how much funding is at stake and whether university employees will lose their jobs. 

 Ono said the university anticipates more orders could come that combined “could have significant repercussions on the university’s budget.” The university announced “proactive measures” Wednesday it will take to address further federal funding cuts.

Ono’s letter was also signed by the executive vice president and chief financial officer, the provost and executive vice president for academic affairs and the executive vice president for medical affairs. 

Ono said the university would have new hiring protocols. On a frequently asked questions webpage, the university states that starting Wednesday, “the hiring of faculty, regular staff, non-student temporary staff and contract staff on the Ann Arbor campus must be approved by the president or an executive vice president before the job is posted. Currently posted jobs also require review prior to extending an offer.” 

The president or executive vice presidents must review non-payroll expenditures over $50,000 and the university is asking departments to review non-essential spending “to achieve additional savings.” 

“Capital projects — including new buildings, renovations and other infrastructure projects — will be reexamined,” Ono said, noting that projects in progress will continue for now. 

Ono said Michigan Medicine will receive separate guidance.

“We appreciate your cooperation as we work to ensure our response to federal funding changes remains considered and strategic,” Ono said. “While it is always difficult to contemplate potential spending cuts, your thoughtful engagement will be vital in helping us continue to fulfill our mission.”

Universities across the country are piecing together how the federal government’s actions affect university programming and their bottom line.

Earlier this month, Western Michigan University President Edward Montgomery announced that two school programs' grants were terminated as part of a broader cost-cutting effort by the US Department of Education.

Montgomery said the school’s Urban teacher Residency Program has a “nearly $5 million grant,” and includes a requirement that participants come from “racially diverse backgrounds.” 

The other program had a $15 million grant and the program was “designed to help Michigan school districts improve student success by implementing sustainable evidence-based practices.”