Government Sequester to Impact NYU Research and Financial Aid
NYU is among the higher education institutions in America that will experience cuts in government funding as a result of the sequester that took effect March. 1.
President Obama and the parties in Congress have worked to reduce the country’s deficit by more than $2.5 trillion through increased tax rates and spending cuts. Congress passed a law in 2011 agreeing to $1 trillion in automatic cuts if Democrats and Republicans failed to agree on a plan to reduce the deficit by $4 trillion in 2013.
“The whole design of these arbitrary cuts was to make them so unattractive and unappealing that Democrats and Republicans would actually work together and find a good compromise of sensible cuts as well as closing tax loopholes and so forth,” Obama said in a public statement.
The federal budget cuts, which occurred without action by Congress, will reduce federal financial aid for students and research funding at public and private universities.
According to the White House, California will be hit the hardest with 9,600 students losing federal aid. About 4,520 students in New York will also lose federal assistance, although tuition rates and Pell Grants are said to remain the same.
NYU will lose an estimated total of $22.86 million of federal funding for the Washington Square campus, NYU Langone Medical Center and Polytechnic Institute of NYU, according to Philip Lentz, director of public affairs. Cuts will impact student aid at the university, research at both the university and Medical center and Medicare for the Medical Center.
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