The University of Pennsylvania told schools and centers to trim certain expenditures by about 4% as it braces for federal policy shifts including higher endowment taxes and limits on graduate borrowing. Penn cited rising legal, insurance and benefits costs and projected endowment-tax exposure under a new federal law; administrators said the university remains in a stronger financial position than peers but signaled continued belt‑tightening. At the same time, the University of Virginia released a DOJ compliance report describing the shuttering of diversity offices and removal of DEI language to satisfy a settlement. Interim President Paul G. Mahoney emphasized academic programming remains untouched, but the university warned the agreement will require ongoing quarterly reporting through 2028 — a step many campus leaders worry will affect recruitment, grant eligibility and campus governance.