Trump actions could force a recession for colleges, R.I. higher ed leader says – The Boston Globe

Brown University is facing the most pressure, with dozens of research grants cancelled and Trump threatening to halt $510 million in funding to the Ivy League college. Egan said all of Rhode Island’s private colleges have faced some level of cuts, and accused Republican leaders of trying to “force a recession on higher education.”

“They’re well on the way to achieving that,” Egan said.

The Trump administration has cut scores of research, particularly involving race and LGBTQ+ people, arguing it amounts to diversity, equity and inclusion and does not serve public health. The cuts include studies seeking to stop the spread of HIV.

The crackdown on DEI, plans to block international student visas, and proposed changes to student aid could all imperil universities, Egan said.

“Clearly there’s a desire to change the way higher education operates,” Egan said. “There will be an opportunity or a chance that great harm will be inflicted on the sector going forward.”

Brown president Christina Paxson has declined interviews about the Trump cuts, citing the uncertainty around future funding. Egan, who lobbies for Brown and the other colleges, said House Republicans’ proposed increase to the endowment tax could cost tens of millions for Brown, on top of the other funding cuts.

Layoffs would be likely if all of the proposed cuts come to fruition, Egan said. A Brown spokesperson said Friday the university has still not received “any demands or formal notification” about the $510 million proposed cut.

“That will harm small businesses, local businesses, local communities, when folks are no longer working and part of the community and part of the economic engine that is higher ed,” Egan said.

Rhode Island’s other colleges do not yet meet the threshold for their endowments to be taxed under the proposal.

Asked about Brown’s high price tag of $92 million a year and a perception that Brown is not contributing enough to Providence, Egan said most students don’t pay the full price tag because of scholarships and aid. He called the $177 million in voluntary payments from the four private colleges in Providence a “phenomenal gift” to the city, considering the universities are tax-exempt as nonprofits.

He said higher education has a major impact on the economy as one of the top employment sectors in the state.

“For those that question the economic impact, you need to go look at some of those local businesses, the pizza shops, the dry cleaners,” Egan said.

Financial woes for New England colleges predate Trump, Egan noted. A lower birthrate in the Northeast compared to other regions of the country means fewer students are turning college-aged each year. Johnson & Wales University recently announced layoffs, citing decreasing enrollment.

In Trump’s spending package, dubbed the “Big, Beautiful Bill,” Egan said he is most concerned about proposed cuts to Pell Grant eligibility — which would make it harder for part-time students to receive the college aid — and the cap on the amount of money graduate students can borrow.

The Trump administration has said the loan limits are “reasonable,” and called the Pell changes “critical reforms” to “prioritize students who truly need financial assistance while promoting completion.”

The Pell Grant, started by a US senator from Rhode Island, provides grants to low-income students that don’t need to be paid back.

Egan also noted that international students tend to pay the full price tag for college, unlike American students who can access federal aid, so blocking student visas would further hurt the universities’ bottom line.

“I find it ironic that around the globe we’re the envy of the world in higher education, but yet in our own country, from not only our leaders but the general public, we’re not seen in even a similar or equal light,” Egan said.

Watch the RI PBS Weekly interview in the player above, or listen to an extended version on the RI Report podcast.

Steph Machado can be reached at steph.machado@globe.com. Follow her @StephMachado.