University of Alabama at Birmingham officials are telling staff to cut back on spending and limit hiring as the school adjusts to dramatic federal funding cuts.

At a recent campus-wide town hall, UAB asked faculty and staff to adhere to “cost containment measures” after federal grants were terminated.

AL.com also reviewed a document, circulated among the College of Arts and Sciences, that said staff should reduce discretionary spending, limit overtime and new hires and look for other ways to cut costs. According to the document, more specific budget details will be shared soon.

A UAB spokesman told AL.com there are no plans for layoffs or benefits reductions at this time.

“We are aware of inaccurate online rumors,” Tyler Greer said. “There are no plans for institutional layoffs, and no decisions have been made regarding changes to benefits for next year. Benefit adjustments are typical and part of our regular annual benefits review process, which is ongoing. We will continue to focus on responsible financial stewardship. Regarding the town hall, there was no agenda or minutes taken.”

An internal document distributed after the July 14 town hall and reviewed by AL.com told College of Arts and Science staff that “due to uncertainty in the higher education landscape related to enrollment and federally funded sponsored research, it is the responsibility of leadership to ensure that all expenditures are mission critical and business essential.”

The college told its own staff to take the following actions to limit expenses:

• Continue to significantly reduce all types of discretionary spending
• Continue to tightly control new hiring in your unit
• Review class sizes, course loads
• Significantly reduce/eliminate overtime pay, extra compensation for various activities
• Postpone, extend, or eliminate equipment purchases
• Review memberships, sponsorships, etc.

Greer confirmed the letter was not “an institution-wide communication.”

“It was sent only to the College of Arts and Sciences from its leadership,” Greer said. He said he’s unaware of any other emails being distributed to other departments or colleges.

“Leaders of our schools, colleges and units are encouraged to plan their budgets with scrutiny on expenses to focus on responsible financial stewardship and best position them to adapt to potential developments,” Greer said. “Areas of possible costs savings they can consider include non-essential expenses like certain travel, incidental meals and events. UAB entities manage their budgets locally, and strategies to manage expenses and remain financially strong vary among them.”

The College of Arts and Sciences is the largest college at UAB, with more than 4,700 students, according to a 2024-25 annual report. The college employs 175 faculty members, the second-highest amount at the university.

UAB is one of several Alabama universities losing millions of dollars in funding from the National Institutes of Health and the National Science Foundation. The grants were cut because they may have involved diversity, equity and inclusion.

According to Grant-Watch.us, UAB has lost more than $18 million in NIH grants and $1 million in NSF grant funding. One of the UAB grants studying COVID-19 included keywords such as vaccine and vaccination.

The next University of Alabama System board of trustees meeting is scheduled for Sept. 11.

AL.com reporter Savannah Tryens-Fernandes contributed reporting.