MIT’s president, Eric Kornbluth, opened a campus‑wide briefing to explain lingering budget woes and a shrinking talent pool. He framed the crisis around an 8% tax on endowment returns that has hit the school harder than most peers. The message cut straight to the facts today.

Federal research funding slipped more than 20% compared with last year, and new awards fell by a similar margin. Combined federal and non‑federal grants now shrink campus activity by 10%. The shortfall threatens MIT’s reputation as a research powerhouse and the nation’s innovation pipeline.

The talent crunch tightens admissions, with graduate enrollment projected to drop nearly 20% outside Sloan, equating to about 500 fewer students. This loss cuts the number of mentees for undergrads and removes bright minds from MIT’s ecosystem, weakening future scientific breakthroughs.

In response, MIT launched 176 grant proposals for the Department of Energy’s Genesis Mission and deepened industry ties, notably the MIT‑IBM Computing Research Lab. The institute also pivots to new income streams like masters‑only programs and a refreshed philanthropy strategy, aiming to shore up resources while safeguarding research momentum.