The University of Pennsylvania notified schools and centers to cut certain expenditures by about 4% next fiscal year as it prepares for new federal endowment taxes and student‑loan policy changes. Senior leaders said recent budget moves have kept Penn in a stronger position than some peers, but warned that higher legal, insurance and benefit costs plus proposed endowment levies could add tens of millions in annual expenses. Penn’s endowment and graduate student mix make it particularly exposed to the new tax and loan caps; projections from outside groups estimate a substantial rise in Penn’s tax bill. The university continues to report a fiscal surplus this year, but officials framed the spending reductions as prudential steps amid policy uncertainty.