The University of Pennsylvania told its schools and centers to trim certain expenditures by about 4% as federal policy shifts—including higher endowment taxes and student loan changes—pressure budgets. Senior leaders said legal, insurance and benefit costs have risen faster than revenues and that Penn remains in stronger financial shape than many peers, but warned the new federal rules could materially raise costs for wealthy endowments. Penn’s endowment, valued at about $24.8 billion last June, faces a higher tax bracket under recent legislation; conservative estimates project a multiyear tax bill in the tens of millions. The university has previously frozen hiring and cut noncompensation expenses, and officials framed the latest reductions as precautionary rather than emergency measures.