Temporary suspension of special salary and compensation adjustments

from UH News May 22, 2025

This message was shared with the faculty and staff of the 10-campus University of Hawaiʻi system on May 22, 2025.

Aloha colleagues,

As we close out the spring semester and look ahead to the months ahead, I want to thank you for your continued dedication during what remains a time of significant uncertainty for higher education across the country.

As you know, the federal funding landscape continues to shift rapidly. In response, the University of Hawaiʻi is taking additional proactive steps to preserve our financial stability and ensure that we remain positioned to respond strategically as conditions evolve.

To that end, effective immediately, there will be a suspension of all Faculty Special Salary Adjustments (SSAs) for merit, equity, and/or market that have not been approved by me as of May 23, 2025. Any SSA requests not approved by that date will be returned to departments without action. Exceptions to this suspension will be made only in cases of retention.

Additionally, there are no current plans to authorize APT Special Compensation Performance Awards at this time.

This suspension will remain in place until further notice as we continue to monitor the financial outlook closely and adjust our approach as conditions warrant.

These actions follow the other financial contingency plans announced April 11–hiring restrictions, limiting travel and additional review of professional services contracts. Please know that these decisions are not being made lightly but are crucial to positioning the university for stability as we enter uncharted territory.

I recognize that this decision may be disappointing and appreciate your understanding and partnership as we navigate these challenges together.

Mahalo for all that you do.

Warmly,
Wendy Hensel
President, University of Hawaiʻi

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President Hensel: Grant terminations, DOJ initiative, international students

from UH News May 22, 2025

This message was shared with the students, faculty and staff of the 10-campus University of Hawaiʻi system on May 22, 2025.

Aloha UH ʻohana,

Congratulations to all on a successful spring semester. I hope everyone finds time to rest and recharge in the days ahead.

Unfortunately, we continue to see federal policy changes, and I write today with new developments since my last update in the May 17 report to the Board of Regents.

Grant terminations

As of May 21, 80 federally funded grants across UH have been affected by terminations, stop-work orders or drawdowns. This includes 69 outright terminations, representing approximately $83.4 million funding and impacting more than 90 employees. As expected, the number and scale of terminations is accelerating and will undoubtedly take a significant toll on the university.

New DOJ “Civil Rights Fraud Initiative” targets DEI

On Monday, the U.S. Department of Justice announced the creation of the Civil Rights Fraud Initiative, which will investigate federally funded universities suspected of violating civil rights laws under the False Claims Act. According to the DOJ, this includes institutions with diversity, equity and inclusion (DEI) policies it considers “divisive,” as well as those allegedly tolerating antisemitism. Schools found in violation could face the loss of federal funding, civil penalties and, in extreme cases, criminal prosecution of responsible officials.

This marks another serious escalation in federal scrutiny of DEI programs and civil rights compliance in higher education. While we believe UH policies are compliant with federal law, we will continue to review our practices to ensure that they remain aligned with evolving guidance and enforcement priorities. We remain committed to providing a learning environment and workplace that is respectful and where all are welcome.

Visa enforcement

We are also monitoring reports of possible deportation threats for international students participating in the Optional Practical Training (OPT) program that have failed to keep their SEVIS records up to date by reporting their employment within the required time. Students whose records are not up to date have been issued 15-day notices warning of possible removal proceedings if they do not update their records.

We continue to work with our international students to urge compliance and to protect their legal status. OPT participants should ensure their record is up to date and contact their international student office with any questions or concerns. The list of contacts, available resources and FAQs are available on our Federal Policy Updates and Resources website.

In a related and deeply concerning move, the Trump administration today revoked Harvard University’s ability to enroll international students—an unprecedented escalation in its ongoing conflict with the institution that is reverberating across higher education.

Positive research funding developments

In more encouraging news, today, a federal judge in Massachusetts has preliminarily enjoined the dismantling of the U.S. Department of Education, ordering the reinstatement of employees whose employment was terminated on or after January 20, 2025, as part of the reduction-in-force announced in March. UH assisted the State Attorney Generalʻs office in obtaining this ruling, which is being appealed by the Trump Administration.

A different federal judge in Massachusetts issued a preliminary injunction blocking the U.S. Department of Energy’s attempt to cap indirect research cost reimbursements at 15%. This is a win (at least temporarily) for higher education institutions like UH, where indirect costs—typically reimbursed at about 50%—help fund essential infrastructure, staffing, utilities and compliance.

The ruling follows a similar decision blocking the NIH’s proposed cap and strengthens ongoing legal challenges to other federal efforts to limit indirect cost recovery including the National Science Foundation’s (NSF) recently proposed 15% cap. The NSF announced on Monday that it is pausing implementation of the cap until June 13, when a federal district court is scheduled to hear arguments in a case challenging the proposal.

Finally, the University has been notified this week of two grants being reinstated by the Institute of Museum and Library Services because of the preliminary injunction entered in federal court on May 13, 2025. Once again, this was due in no small part to the good work of the AG assisted by UH.

Temporary suspension of salary compensation adjustments

In response to the ongoing federal funding uncertainty, we are implementing a temporary suspension of all Faculty Special Salary Adjustments (SSAs) for merit, equity and market that have not been approved by May 23, 2025. Exceptions will be considered only for retention purposes. Additionally, APT Special Compensation Performance Awards will not be authorized at this time. More information can be found in my May 22 message announcing this step.

This is the latest financial contingency action taken since we announced hiring restrictions, travel limitations and heightened review of contracts in April. These steps, while difficult, are necessary to maintain the university’s financial stability as we navigate this rapidly evolving environment.

Moving forward

We continue to work closely with national higher education organizations, Hawaiʻi’s congressional delegation, Gov. Green, the State attorney general and our own Presidential Advisory Council on Federal Policy and leadership teams to respond to these challenges.

I will continue to keep you informed on any new developments.

With aloha,
Wendy Hensel
President, University of Hawaiʻi

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