Important Update on the University's Financial Health

On May 19, 2025, University President Peter Kilpatrick shared the following message with the campus community.

Dear Members of the University Community,

Last October, I wrote to you about the growing deficits our University has faced due to declining enrollment revenue and rising costs, and the steps we needed to take to align our operational expenses with our revenue. At that time, I shared that we needed to make difficult, deep cuts in our operating budget and identify areas for revenue growth to ensure the long-term financial strength of the University.

Our approach to adjusting our annual operating budget by $30 million — approximately 10% — has included multiple strategic components:

• Reduce operational budgets across administrative and academic units, which included reducing our planned salary increase pool from 4% to 2.5% and reducing our maximum retirement contribution from 10% to 7.5%;
• Launch several revenue-enhancing initiatives, including a new bachelor and master of science in artificial intelligence, an accelerated bachelor of science in nursing, a master in business administration, a new online master in data analytics, and a master of evangelization and culture, in partnership with Bishop Barron’s Word on Fire Institute;
• Offer voluntary separation packages to qualified faculty; and
• Select a number of position eliminations based on business and operational needs of the University to minimize the negative impact on University service levels to students. 

Conclusion

Today, with a heavy heart, I must inform you that we have implemented the concluding phase of our comprehensive financial resiliency plan, which unfortunately involves the elimination of 66 active staff positions across various departments, accounting for 7% of our workforce. 

Those directly affected were notified today, and I want to acknowledge the tremendous contributions these valued colleagues have made to our University community. Each person affected has helped shape our institution and contributed to our mission in meaningful ways. They will remain on paid leave for one month, during which time they will not be responsible for any work and will continue to receive full benefits.

For our departing colleagues, we are providing comprehensive transition support, which includes an enhanced severance package made possible in part through the compassionate support of our dedicated donors. This package reflects both our institutional commitment and the generosity of our broader University community who stepped forward to help care for those affected during this transition. 

I recognize that this news affects our entire community. For those directly affected, this represents a significant personal and professional change. For remaining faculty and staff, this may bring feelings of uncertainty and concern for colleagues. Please know that we are committed to providing support for all members of our University family during this challenging time.

Balanced Budget

With these measures now in place, I can confirm we are on track to maintain a balanced budget for this current fiscal year, which began May 1. As our financial health continues to improve, we are committed to reinstating the retirement match for employees and implementing compensation increases. These remain key priorities, and we will work diligently toward these goals as our financial recovery allows.

The restructuring process we have completed today is significant. We did not take the easy path, but I am confident that we took the right one. With these essential changes complete, we stand on solid financial ground for the first time in years. Now we can channel our energy toward strengthening our academic programs, enhancing the student experience, and fulfilling our founding mission to give to the nation, the Church, and the world its very best citizens — our graduates. 

I am deeply grateful for your perseverance throughout this process. Thank you for your dedication, your understanding, and your commitment to ensuring that The Catholic University of America will continue to serve its vital mission far into the future.

Sincerely,
 

Peter Kilpatrick
President
The Catholic University of America

Frequently Asked Questions

General Information

Why is the University implementing these position eliminations? 
After a thorough review of our operations and finances, we determined that restructuring was necessary to align our expenses with revenues and ensure long-term financial sustainability.

How many positions are being eliminated?
Sixty-six active staff positions across the University (7% of the workforce) are affected by this restructuring.

When will these changes take effect? 
While affected employees were notified on May 19, they will remain official employees through June 13.

Will there be additional rounds of position eliminations? 
This restructuring was designed to be comprehensive. We do not anticipate further position eliminations as part of this process.

How were decisions made about which positions to eliminate? 
Decisions were based on a careful analysis of operational needs, financial considerations, and organizational structure to ensure we can continue to fulfill our core mission effectively.

Which departments or areas were most affected by the staff reductions?
The position eliminations primarily affected administrative and operational areas that are less directly connected to the student experience. We made deliberate decisions to minimize impact on student-facing roles, focusing instead on streamlining administrative functions, reducing duplication of services, and adjusting staffing in areas where technology solutions could improve efficiency.

How much money will be saved through these position eliminations?
The position eliminations will result in approximately $9.7 million in annual savings, representing a significant portion of our overall $30 million budget adjustment plan. These eliminations were necessary to achieve a balanced budget for the current fiscal year.

For Affected Employees

What support is being provided to affected employees? 
Affected employees will receive:

• Continued employment and benefits through June 13, 2025
• Two weeks of additional pay in their final June paycheck
• An additional, voluntary severance amount made possible by donor support
• Outplacement assistance for six months through INTOO

Can affected employees apply for other positions at the University? 
Yes, affected employees are welcome to apply for open positions for which they are qualified and will be given full consideration.

Will affected employees receive references? 
Yes, the University will provide favorable references for affected employees.

What if an employee currently has an additional role (like a summer lecturer position)?
Additional assignments are not impacted by this event. Employees can continue in those roles after June 13, maintaining email access and badge privileges specific to those positions.

Who can employees contact with specific questions about their situation?
Affected employees may contact HR at [email protected].

For the Broader Community

How will services be maintained and workloads be managed during this transition? 
Supervisors will work with Division leaders to develop plans to ensure continuity of essential services. Some services may need to be temporarily paused while we rebalance the work across the University.

Who will be taking on the responsibilities of eliminated positions? 
Responsibilities are being redistributed within departments and, in some cases, processes are being redesigned, or in some cases eliminated to accommodate the new organizational structure.

Will this affect student services or academic programs? 
We have prioritized maintaining the quality of our academic programs and essential student services.

Moving Forward

How will the University continue to fulfill its mission with fewer staff? 
The higher education landscape has become increasingly competitive, requiring institutions to be more agile and efficient in how we operate. By creating a leaner administrative structure, we are actually enhancing our ability to respond quickly to emerging opportunities and challenges. This allows us to direct more resources toward our core mission activities: providing exceptional education, conducting meaningful research, and serving our communities.

What are the enrollment goals for the upcoming academic year?
Our overall enrollment goals for the University are dependent on new and continuing enrollment achieved through recruitment and retention and require a University-wide effort. For the fall term of 2025, our overall budgeted enrollment goal is 5,013 students (3,289 Undergraduates, 1,724 Graduates). At this time, we are on track to achieve both the overall goal and the new enrollment goals for each student cohort listed below:

• First Time Undergraduates: 800
• Transfers: 80
• Masters: 428
• PhD: 119
• Law: 180

What role will donors play in the University’s financial recovery?
Our donors have played an extraordinarily supportive role throughout this process of financial restructuring. Their continued commitment speaks volumes about their belief in Catholic University and our mission. Several stepped forward specifically to enhance the transition support for affected employees, demonstrating both their compassion and their understanding of the difficult decisions we have had to make.

The fact that our donors have remained engaged and supportive during this challenging time is significant. They recognize that achieving a balanced budget is essential for our long-term sustainability, and they are partnering with us to ensure we emerge stronger. Their willingness to invest in our future even as we implement necessary changes reflects their confidence in our leadership, our strategy, and our mission.

Support Resources

What resources are available for employees who are feeling stressed or anxious?

The University’s Carebridge Employee Assistance Program (EAP) provides confidential consultations. Carebridge counselors will listen to your concerns, help identify the source of your problems, and work with you to bring about practical solutions as quickly as possible. Carebridge services are accessible 24 hours a day, 7 days per week. To learn more, please visit the Carebridge site. The access code for Catholic University is HSBH4.

Who should staff contact if they have questions about their current role or responsibilities?
Staff members with questions about their current role, responsibilities, or how the restructuring may affect their position should first contact their immediate supervisor. Your supervisor will be best positioned to provide specific information about departmental operations and any changes to workflow or responsibilities resulting from the restructuring. Understanding that these changes are very new, your supervisor and divisional leadership will be reviewing your area’s responsibilities over the next few weeks as we rebalance workloads throughout the University.