President Hensel: Steering UH through shifts in national policy

UH News, February 18, 2025

This message was shared with the students, faculty and staff of the 10-campus University of Hawaiʻi system on February 18, 2025.

Aloha University of Hawaiʻi ʻohana,

As part of my commitment to transparency and open communication, I write to provide an update as we continue to assess the impact of the recent federal executive orders (EOs). It is our goal to be as clear as possible in our actions and provide consistent guidance across all our campuses.

New “Diversity, Equity, Inclusion and Accessibility” (DEIA) Directives

On January 31, 2025, the President issued Executive Order 14173 titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” The directive states that DEIA programs can violate civil rights laws and directs all grant recipients, including universities, to end unlawful “preferences, mandates, policies, programs and activities.” The EO requires universities, as a condition of receiving federal funding, to certify that they do not operate any programs promoting DEIA. Consequences for false assertions are not only the loss of federal funding, including financial aid for students, but potentially civil and criminal penalties for the university’s certifying official.

On Friday, the U.S. Department of Education issued more guidance in the form of a “Dear Colleague” letter on how to interpret this order. It states categorically that “if an educational institution treats a person of one race differently than it treats another person because of that person’s race, the educational institution violates the law.” It prohibits universities from using race “in decisions pertaining to admissions, hiring, promotion, compensation, financial aid, scholarships, prizes, administrative support, discipline, housing, graduation ceremonies, and all other aspects of student, academic, and campus life.” On Sunday, the DOE stated more clearly that universities may “no longer operate programs based on race.”

Notably, EO14173 also states that it does not prevent universities from “engaging in First Amendment-protected speech” or “advocating for, endorsing, or promoting the unlawful employment or contracting practices prohibited by this order” taught “as part of a larger course of academic instruction.” While the meaning and extent of these exemptions are unclear, they suggest that academic programs and curricula currently may fall outside the order.

Changes to Federal Grant Funding and Research Activities

Another EO issued in January rescinds prior orders promoting “affirmative action” and “environmental justice” and directs federal agencies to terminate all such actions, initiatives, and programs.

In addition, the NIH recently directed a change to indirect cost recovery rates in federal grants, reducing them from university-negotiated rates (typically between 25–70%) to a maximum of 15%. This move is significant for all universities and potentially could reduce research funding nationally by billions of dollars.

(CLUE: Indirect cost. = Mindless bureaucracy.)

Potential impact on UH

Federal funding is an extremely significant source of financial support for the university. For example, last year UH received $386M in extramural funding from the federal government. This funding supports programs, research projects, and salaries for thousands of employees across the university. Moreover, students receive significant federal financial aid and other forms of support implicated by these orders. In short, we cannot carry out our core higher education mission without federal government funding.

Response by UH

We are working closely with Hawaiʻi’s Attorney General, who has joined a coalition of states to file suit in two cases to challenge the federal directives halting funding for DEIA-related programs and capping indirect costs for research at 15%. In both cases, a temporary restraining order has been granted to provide time for the court to consider the complex legal issues.

We will continue to pursue every means available to us to preserve our mission and core values, which have not and will not alter with these changes. Nevertheless, the power of the federal executive branch to set policy prospectively is significant. While these legal actions provide temporary relief, long-term implications remain uncertain.

As required by the federal government, we are conducting a comprehensive review of policies, programs, and positions with respect to the EO mandates. We will issue new guidance through frequently asked questions in the days ahead. As I shared previously, I am forming an advisory council of stakeholders to provide ongoing, transparent communication and a forum for community voices in this process. The council’s membership will be announced in the near future, and their first meeting will be held by the end of the month.

Careers and jobs of individuals within our community are directly dependent on federal funding. Students rely on federal aid to pursue their academic dreams. The stakes are incredibly high for both the actions and inactions of our university and each individual in our community. Thus, we will take measures and make changes that are legally appropriate and necessary, with full knowledge of our deep responsibility to our community.

While some may wish for their chancellors or deans to speak out against these new policies, we must maintain clarity and consistency as we navigate this complex moment. On February 6, the Board of Regents passed a motion authorizing only me and the Board chair to speak officially on behalf of the University of Hawaiʻi regarding federal EOs and related actions. This step is necessary to maintain clarity and consistency as we navigate this complex moment.

I know that many of you are feeling a mix of frustration, concern, and uncertainty. Those feelings are entirely valid. However, I encourage each of us to shift our focus toward what we can control. Most importantly, remember—we are not facing this challenge alone. We are navigating it together as a united UH community.

While we donʻt hold all the answers today, I can assure you that we are approaching this moment with care, thoughtfulness, and an unwavering commitment to our students, faculty, staff, and the communities we serve. Together, we will move forward—guided by our mission, strengthened by our values, and committed to the future of UH.

In gratitude and aloha,
Wendy

Read more about UH‘s response to the EOs.

VIDEO: President Hensel addresses federal policy changes, reaffirms commitment to community | University of Hawaiʻi System News

SA: Hensel details confusion and impact of Trump’s executive orders on UH | Honolulu Star-Advertiser

HNN: University of Hawaii removes ‘diversity’ from key office in effort to safeguard federal funding