Navigating change with purpose and resolve
Dear colleagues,
As a public institution, NAU has always advanced its mission within evolving social, political, and economic landscapes. While recent federal policy changes bring new complexities, our commitment to academic freedom, student success, and research excellence remains steadfast. Thanks to our collective efforts, we are well-positioned to adapt, building on record-high retention and graduation rates, a strong financial position, and a clear vision to serve our students and our state as a preeminent engine of opportunity.
Our leadership team is actively monitoring federal actions, consulting with policy and legal experts, and working in close coordination with peer institutions and national associations. A recent focus has been the proposed 15% cap on indirect cost recovery from the National Institutes of Health, which could significantly impact research funding. While legal challenges are expected and the outcome remains uncertain, we are taking proactive steps to ensure financial resilience.
Given this backdrop and other ongoing developments, I want to chart a clear path for our university community through the spring and beyond. Below are key milestones and guiding principles we will follow:
- Federal funding assessment: We are currently reviewing commitments in areas most exposed to federal funding shifts, pausing or limiting new spending while covering previously incurred costs. University leaders will work closely with affected programs to determine next steps.
- Five-year budget forecast: By May 1, we will share a five-year budget forecast outlining financial scenarios and key action steps to position us for a successful Fiscal Year (FY) 26 and beyond. This longer-term planning will help us anticipate risks and seize opportunities, ensuring that strategic finance principles are embedded into our institutional trajectory moving forward. In the short term, we expect to close FY25 in a strong position, with FY26 serving as a transition period, where we will mitigate impacts through thoughtful cost containment measures, intentional revenue growth, and careful use of reserves.
- Commitment to communication: We will keep our university community informed through regular updates and open discussions in Faculty Senate, Staff Advisory Council, and other forums. Looking ahead, we must remain focused on our mission and avoid speculation that distracts from our responsibilities. Not all challenges will materialize, and those that do will be met with strategic, adaptable decision-making. Maintaining open lines of communication will be crucial, and shared governance will ensure transparency and engagement informs thoughtful decision-making.
Today’s message focuses on our financial position and how we will manage the work ahead; however, we also recognize there are other emerging challenges that may affect our university and community, such as executive orders related to federal immigration laws. In response, we are reviewing existing protocols and will provide updates and resources as appropriate. Navigating these uncertainties requires careful planning, collaboration, and transparency. I encourage you to stay engaged, trust in our approach, and help shape our path forward. Through it all, we remain committed to living our institutional values within the legal, social, and political framework in which we operate.
Thank you for your dedication to NAU, and please continue to support one another and embody the Lumberjack culture of care.
In partnership,
José Luis Cruz Rivera
President