March 21, 2025

Update on Federal Funding, Department of Education Layoffs, and Fiscal Measures

Dear Gallaudet community:

I am writing to provide updates and context on the Continuing Resolution (CR) that recently passed Congress, the layoffs at the U.S. Department of Education, and their impact on our finances. While we have clarity on some aspects, there are still uncertainties we must prepare for.

On March 14, Congress passed a CR that funds the government at FY 2024 levels through September 30, 2025. This includes continued funding for Gallaudet and NTID under the Education of the Deaf Act. However, if a full budget is not passed by April 30, a percentage could potentially be cut from the entire Congressional budget. This is referred to as sequestration. If the sequestration is enacted, it could potentially be cut from the current fiscal year’s entire budget. The President of the United States will have the authority to implement or waive this cut, but to date, no decision has been made.

Additionally, the Department of Education has implemented significant layoffs, affecting nearly 50% of its workforce, including our liaison. While the Department of Education is required to assign a new liaison, it is unclear how and when this will happen. The Department of Education has confirmed that our funding is secured, but our experience with CR in the past tells us that there is a multi-week delay in payments. Importantly, student aid programs such as FAFSA, Pell Grants, and federal loans will not be affected. Additionally, President Trump has signed an Executive Order mandating the closure of the Department of Education; this is an action that requires the agreement of Congress and likely will be challenged in court. We must be mindful that he is taking steps already, requiring us to monitor actions and understand their potential impact.

Given these uncertainties, let us continue to be thoughtful and responsible stewards of our financial resources. Gallaudet has multiple revenue sources and while we are making steady progress, we still face challenges. The hold on spending as outlined on March 3 by Chief Financial Officer Brad Hermes remains the same. 

I am grateful to share that we broke even in Q1–a significant improvement from last year. This reflects the hard work and dedication of our community. However, we are still facing a shortfall of more than $2 million in our FY 2025 budget, reinforcing the need for continued financial discipline. The Board of Trustees has set up an ad hoc committee to continue to review the amended FY 2025 budget proposal that ensures Gallaudet ends the fiscal year at break even or better.

Despite these challenges, we can remain hopeful with the importance of Gallaudet’s mission. We are making progress, and together, we will continue to strengthen Gallaudet. We are focused on growing revenue through enrollment and other opportunities, while also managing our resources wisely. Change is never easy, but I have every confidence in our ability to navigate these uncertain times.

Thank you for working diligently to support our students, our mission, and each other to advance the Gallaudet Promise. 

Sincerely,

Roberta Cordano
President