MIT President Sally Kornbluth announced in May 2026 that total research spending at MIT has fallen 10 percent from a year ago, and that graduate admissions for 2026–27 are down roughly 20 percent—approximately 500 fewer students. Federal funding cuts, an 8-percent endowment tax, and visa policy changes that have discouraged international applicants are the named causes. MIT is not alone: research universities across the country face the same pressures.

MIT is one of the most well-funded research institutions on earth. When its president says research has shrunk 10 percent in a single year, that's not a technical footnote. It's a signal.

On May 14, 2026, The Boston Globe and Stat News both reported that MIT President Sally Kornbluth had described the situation publicly, calling it "a loss for the nation."12 She pointed to three specific causes and warned that the decline in graduate enrollment is not a one-year correction.

The Numbers

MIT's situation breaks into two connected problems.

Research contraction. Total research spending at MIT—combining federal and non-federal sources—fell 10 percent compared to the prior year. The drop in research funded specifically by federal awards is steeper: down more than 20 percent year-over-year. The number of new federal research awards is also down more than 20 percent.1

Graduate admissions cut. For the 2026–27 academic year, MIT reduced graduate admissions by roughly 20 percent in programs outside the Sloan School of Management and the Electrical Engineering and Computer Science master's program. That translates to approximately 500 fewer students entering MIT's graduate programs this fall.2

500fewer graduate students will enroll at MIT in fall 2026 compared to last year—a 20% cut in admissions outside Sloan and EECS master's programs, driven by federal funding declines.

Three Causes MIT Named

Kornbluth pointed to three distinct policy-driven factors:

1. Federal research funding cuts. The Trump administration's budget proposals and agency-level freezes have reduced grants flowing from NIH, NSF, and other federal research agencies. We've reported on the broader effects of federal research cuts across universities and on the White House's firing of the entire NSF board. MIT is absorbing those cuts directly.

2. A new 8-percent endowment tax. A law passed as part of recent federal budget reconciliation raised the excise tax on large university endowments to 8 percent. MIT's endowment is among the largest in the country. That tax reduces the money available for graduate fellowships, research support, and departmental operating budgets.

3. Immigration policy changes. Visa restrictions and uncertainty around F-1 student status have made many international applicants—who fill a disproportionate share of STEM doctoral programs—less likely to apply to U.S. schools. This compounds the federal funding problem: fewer international students means fewer full-tuition payers who cross-subsidize domestic graduate funding.

If you're planning to start a PhD program at a research university in fall 2026 or 2027, understand that funded positions are harder to get than in prior years. Lab budgets are tighter across the country, and some faculty have stopped taking new graduate students entirely while awaiting grant renewals.

What This Means If You're Considering Graduate School

A few practical implications for students weighing their options:

Admission rates have dropped. Fewer funded slots means programs are accepting fewer students. If you've been using acceptance rates from 2023 or 2024 as a baseline, expect them to be lower now. This affects how many safety programs you need on your list.

Research assistantships are not guaranteed. At most research universities, PhD students are funded through grants tied to specific faculty projects. If those grants are smaller or have been cut, faculty advisors cannot take on new students regardless of how strong a candidate you are. Institutional fellowship funding is a separate issue, but many departments have cut funded cohort sizes.

STEM programs carry the most exposure. Federal research dollars flow heavily into science, technology, engineering, health, and defense research. Humanities and professional programs face less direct exposure to these cuts, though the endowment tax hits all programs indirectly.

This is not only an MIT problem. The NSF Graduate Research Fellowship program, NIH training grants, and DOE fellowships collectively fund tens of thousands of graduate students across the country. PhD programs are cutting admissions nationwide, not just at MIT.

Thinking Through the Decision

For undergrads weighing graduate school against going straight to work, the funding instability adds a real variable. A funded PhD offer in 2026 carries more risk than it did in 2022, because the grant funding that supports your stipend and research is less stable.

If you're committed to graduate school, starting research experience early and building strong relationships with faculty before you apply gives you a meaningful edge in a tighter market. And knowing how to get into graduate school has never required more strategic thinking than it does right now.

What MIT Is Doing

Kornbluth said MIT's Washington office is working across party lines to raise awareness about the damage the endowment tax is causing at MIT and peer institutions. The university is also pursuing non-federal research partnerships to partially offset the federal reductions.

But the math is difficult. A 10 percent cut in total research spending at an institution that runs billions of dollars in research annually is not a rounding error.

Footnotes

  1. The Boston Globe. (2026, May 14). A loss for the nation: MIT president says research has fallen 10 percent, and grad student enrollment is down. The Boston Globe. https://www.bostonglobe.com/2026/05/14/business/mit-decreases-research-graduate-admissions/ 2

  2. Stat News. (2026, May 14). MIT says research has fallen 10 percent, and grad student enrollment is down. Stat News. https://www.statnews.com/2026/05/14/mit-research-fell-10-percent-grad-student-enrollment-down/ 2