Yale University told faculty and staff it expects layoffs as it prepares to pay roughly $300 million a year under a new higher endowment tax that takes effect in 2026. Senior leaders said schools and units will delay hiring, cut travel and other expenditures, and that workforce reductions “may be necessary” where vacancy management isn’t enough. The 8% upper‑tier tax on investment income for the wealthiest endowments, enacted in this year’s budget law, dramatically increases Yale’s annual expenses—exceeding its undergraduate financial‑aid budget and larger than the operating budgets of many of its schools. University officials warned that the tax, along with federal limits on research overhead, poses a sustained threat to research funding and program support. For higher‑education finance officers the Yale notice is a signal that even perennial donors and top‑tier endowments will face hard choices in 2026: hiring freezes, program cuts, and restructuring to preserve core research and student support activities.