DePaul continues to feel the shockwaves of the Trump administration’s attacks on higher education and policies that deincentivize international students from attending school in the United States. 

While the university has been largely spared from cuts to federal research grants, it faces growing financial pressure from declining international enrollment.

Enrollment of students from other countries fell by 755 students this fall compared to last year, including a nearly 62% drop in new international graduate students, President Robert Manuel wrote in an email to faculty and staff obtained by The DePaulia. Continuing undergraduate enrollment also declined by about 300. 

While first-year and transfer enrollment remained strong, those gains were not enough to offset losses in other areas, Manuel wrote. Despite these pressures, DePaul’s budget FAQs note that the university’s FY26 budget remains balanced and stable with no formal “budget gap.” 

Manuel also cited rising health insurance costs, which have increased by more than $23 million over the past five years. These costs are almost entirely tied to employee health plans and retirement benefits and have not been affected by the introduction of student health plans, a university spokesperson said. 

“With revenues down and expenses rising, we must act immediately to reduce spending in our current operating budget to meet our financial obligations,” Manuel wrote. “While we know this will be difficult, we want to be transparent about the factors driving this decision and outline how we plan to meet this moment.”

In consultation with the Strategic Resource Allocation Committee (SRAC), a body that develops budget recommendations to align spending with the university’s mission and strategic priorities, leadership is considering a range of potential measures to reduce spending. These may include cutting pay at the executive level, evaluating the size of staff and administration, eliminating the merit increase pool for faculty and staff, freezing staff hiring, slowing faculty hiring, optimizing course offerings and limiting discretionary spending.

Other institutions have enacted hiring freezes in recent months amid federal funding uncertainty, including Emory University, Northwestern and the University of Notre Dame. Manuel’s email also reaffirmed Designing DePaul, the strategic plan that has been central to his tenure at DePaul, as the “clear path forward” for the university.

DePaul’s budget FAQs add that the university’s $1 billion endowment cannot be used to cover short-term budget gaps. Most funds are restricted by donors for specific purposes, such as scholarships or faculty positions. Only a fixed 4.5% of the endowment’s three-year average is distributed annually to support operations, ensuring the fund remains available for long-term needs rather than immediate budget pressures.

“In this time of uncertainty, we want to express our commitment to each of you,” Manuel wrote. “Please know that your well-being and motivation are among our highest priorities. We have immense faith in our collective ability to move through this challenging period together.”

Faculty and staff will be invited for educational budget sessions and have the opportunity to participate in Faculty Council meetings, Staff Council meetings or a Faculty Council town hall on Oct. 15. 

No town halls or other budget listening sessions have been scheduled for students. The Joint Council held an educational budget session that included the SGA president, who is also a voting member of SRAC, according to a university spokesperson.