Dear WashU students, faculty and staff,
I hope this finds you well and enjoying the start of the summer months. I’m writing to provide you with an update on the developing situation at the federal level as policymakers consider actions that could significantly impact higher education. It’s important for you, as members of our WashU community, to stay informed and to understand how you can get involved.
Since the start of the year, our team has been heavily engaged in advocacy work with our federal partners in support of WashU and our mission. I personally have been traveling regularly to meet with elected officials across Missouri, in D.C., and around our region to share what’s happening at WashU and to make sure our elected officials understand the importance of the work we do and our positive impact on society. I was in Washington again this week, and I’d like to share with you what I’ve learned, and what may be ahead.
Trust in higher education
Unsurprisingly, there continues to be a strong belief in D.C. and across the country that higher education has lost its way. We are hearing clearly from our elected officials and members of the public that reform is needed in order to rebuild trust now lost with the American people. We continue to lean into the work we started last year with our partners at Vanderbilt University, leading the higher education community toward actions that acknowledge the need for reform and embrace change, but hold steadfast to our core principles in support of free expression, academic success, research and patient care. This effort has opened space for us to engage with elected officials in a productive way, and we are pleased many of them have shared with us their support of WashU’s leadership efforts.
Key issues
Two issues that are driving much of our work in D.C. these past several months are a potential expansion of the federal endowment tax and dramatic reductions in research funding. Here is where things stand today on both.
Federal endowment tax
The U.S. House in late May passed the “One Big Beautiful Bill” legislation and sent it to the U.S. Senate for further deliberation. If this legislation is enacted as written, it would move WashU from a 1.4% tax rate on our endowment net income to a 7% tax rate. This amounts to a $65 million increase in taxes annually, or the equivalent of nearly 1,100 full scholarships for WashU undergraduate students. My meetings this week in D.C. with senators and congressional staff give me hope that there are steps we can take to improve our standing and keep our tax rate in the 1.4% bracket. The Senate likely will act on this very soon, so we will continue advocating for our position from several different angles.
Federal research funding
Additionally, the House and Senate are currently negotiating annual budget levels for all areas of the government, including the NIH, NSF and other sources of federal research funding. This includes the future of government reimbursements for indirect costs associated with research, which the administration is attempting to cap at 15%. This would result in a multi-million-dollar reduction to our research enterprise, threatening the critical work underway at WashU and the people who are doing it.
At a meeting in D.C. this week with senior leaders at the Office of Management and Budget, I, along with other WashU leaders, had the opportunity to articulate the importance of this funding, and to discuss credible options to reform the program to protect WashU research. In addition to meetings like this one, we also are participating in a multi-sector effort to identify reforms to the indirect cost recovery model, and working with key members of Congress who are looking to offer their own proposals on this matter. We will remain closely engaged in all these efforts and serve as a source of information and advocacy for each.
We also continue to monitor proposals that could have a significant impact on financial aid and student success, as well as research and patient care, such as a prohibition on foreign subawards for research grants, or changes to Medicaid. We have raised our concerns with our Missouri congressional delegation and are working in partnership with our trade associations to positively influence potential administrative actions. Some of these issues may be finalized in the coming weeks, while others may take until the end of the calendar year.
How you can help
We have an uphill climb ahead of us, but I remain energized by the impactful story we have to tell at WashU, and by the many of you who have engaged in support of the university. Please know your individual advocacy is making a difference. Whether you engage through our WashU Advocates platform, communicate with your elected officials on your own, or pass along important information to your own network, making your positions known to your elected officials matters greatly. So keep it up. It’s working.
No one knows for sure what the coming days, weeks or months will bring. We can only control how we engage and respond. I am proud to join each of you in this effort, and to carry forward our mission together.
Sincerely,
Andrew D. Martin
Chancellor