Yale University told faculty and staff it expects workforce reductions and belt‑tightening after Republicans’ new tax law imposed a higher endowment income tax on the wealthiest institutions. Yale estimates the increased rate will cost the university roughly $300 million annually beginning in 2026 — an expense the institution says exceeds its undergraduate financial‑aid budget and will force cuts to hiring, travel and possibly staff positions. The announcement underscores broader fiscal pressures across higher education: federal research overhead reforms, stalled state support, and demographic shifts that undermine revenue projections. CFOs and provosts at research‑intensive universities now face hard choices about program investments, staffing and long‑term commitments to aid and research.