BALTIMORE — The University System of Maryland (USM) is prepping for significant funding cuts. In fiscal year 2025, USM received approximately $870 million in state funding, accounting for nearly one-third of their annual revenue. Staring down a $3 billion budget deficit, the State General Assembly decided to significantly reduce that amount for Fiscal Year 2026, which begins July 1. On top of that, the federal government is planning to cutback on future contracts and grants for universities nationwide. This fiscal year alone , the University of Maryland raked in an additional $483 million in federal funding. In January, WMAR-2 News reported how the University of Maryland Baltimore had received a notices from the federal government, terminating millions in research grants. As a result of the anticipated cuts to state and federal funding, USM faces inevitable revenue loss. Last week, the USM Board of Regents passed a resolution authorizing employee furloughs and salary reductions. "The Board of Regents has determined that it is in the best interest of the USM institutions, the USM Office, and the USM Regional Higher Education Centers to authorize the option of personnel actions such as furloughs, temporary salary reductions, or equivalent salary-related measures to support institutional financial management," the resolution states. "The Board of Regents regrets that such measures may be necessary." While the resolution calls for pay reductions to last only through June 30, 2026, several other conditions could further impact employees in the meantime. Here are just a few noted in the resolution.
Due to potential furlough affects on staffing levels, the resolution does not rule out certain institutional closures on a limited basis. "The Plan may include institutional closures for a limited number of days to achieve cost savings, provided that essential services—including class schedules, critical student services, and patient care—are maintained," the resolution reads. It's unclear how many employees or campuses the resolution could entail.
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Due to potential furlough affects on staffing levels, the resolution does not rule out certain institutional closures on a limited basis. "The Plan may include institutional closures for a limited number of days to achieve cost savings, provided that essential services—including class schedules, critical student services, and patient care—are maintained," the resolution reads. It's unclear how many employees or campuses the resolution could entail.
