The University of Pennsylvania directed schools and centers to reduce “certain expenditures” by roughly 4% for the coming fiscal year as administrators brace for new federal endowment taxes and changes to graduate loan programs. Senior leaders cited rising legal, insurance and benefit costs and advised that Penn’s finances are nonetheless stronger than feared, citing an operating surplus and large net assets. Analysts project Penn’s endowment tax bill could rise materially under the new law; conservative estimates put the university’s additional tax burden in the tens of millions. Penn previously enacted hiring freezes and noncompensation cuts after federal policy shifts last year; the new trimming order signals peer institutions should expect similar belt‑tightening and strategic reprioritization.