Getting your Trinity Audio player ready...

The head of the Connecticut university’s chapter of the American Association of University Professors calls it “demoralizing.”

He is referring to an increase in the federal tax on university endowments income beginning next year that could potentially result in layoffs at Yale University , university officials said in a memo to faculty, staff and students.

The university is expected to pay $300 million per year due to the increase in the federal tax, the university administration said in a recent memo. Yale’s endowment is currently taxed at an annual rate of 1.4%. Beginning on July 1, 2026, that tax will increase to 8%, the university explained in its memo.

“Nearly two-thirds of the university’s expenses relate to compensation and ben

See Full Page