Yale graduate school cuts Ph.D. intake amid higher endowment tax: Law school enrollment remains steady

Yale University’s Graduate School of Arts and Sciences is reducing student enrollment as it prepares for financial pressure linked to a higher federal endowment tax. However, Yale Law School will not make major changes to its intake, according to a report by the Yale Daily News.

The University is tightening spending after President Donald Trump signed a law last year increasing the tax on large university endowments. The measure affects wealthy private universities with significant investment funds and has prompted Yale to reassess budgets, hiring, and long-term financial planning across departments.

Graduate School faces cuts

According to the Yale Daily News, Yale will reduce graduate enrollment by around 13 percent in humanities and social sciences and 5 percent in STEM fields over the next three years. These reductions are part of a broader strategy to manage costs while maintaining academic quality.

Graduate programs require substantial institutional funding. Yale provides healthcare coverage, tuition waivers, and living stipends to many Ph.D. students. As a result, each additional doctoral student represents a financial commitment from the University rather than a revenue source.

To address financial pressure, Yale has introduced a 90-day hiring freeze, reduced non-salary expenses by 5 percent, and offered a one-time retirement incentive to managerial and professional staff. In December, administrators also warned that layoffs could occur as departments adjust to smaller budgets and enrollment targets.

Law School enrollment unchanged

In contrast, Yale Law School plans to maintain its current enrollment levels. Law School spokesperson Alden Ferro told the Yale Daily News that the school is not planning any significant changes to its student intake.

Yale Law School enrolls approximately 600 to 630 J.D. students. Tuition for the 2025–2026 academic year is set at $76,636. Although most students receive some form of financial aid, tuition payments mean that enrollment generates revenue overall.

Sterling Professor Robert Post LAW ’77, a former dean of the Law School, explained that unlike graduate programs, the Law School does not rely on its endowment to subsidize students to the same extent. He said that increasing enrollment can be one way to offset financial strain because tuition contributes to operating income.

Post recalled that during the 2009 financial crisis, when the Law School’s endowment declined by 35 percent due to the Great Recession, the school responded by increasing enrollment to strengthen its financial position.

However, he noted that higher endowment taxes could still affect scholarship resources, since many Law School scholarships are funded through endowment income. Programs such as the Soledad LAW ’92 and Robert Hurst Horizon Scholarship Program currently support a record 96 students. A reduction in endowment returns could limit such support in the future.

Broader impact across universities

Yale’s adjustments reflect a wider trend among elite institutions facing financial recalibration. Harvard University has announced a 50 percent reduction in Ph.D. admissions in science departments, signaling deeper cuts elsewhere in higher education.

The developments highlight how changes in federal tax policy are reshaping financial strategies at major universities, influencing enrollment decisions, staffing plans, and scholarship funding models.
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