University of Connecticut officials told the Appropriations Committee on March 5 that they have increased incoming enrollment, raised fundraising and achieved record research expenditures but that a potential federal policy change and the loss of one-time state funding create near-term budget risk.

President Bridal Merrick said the university accepted about 1,300 more students this year and that roughly 73 percent of the incoming students identify as Connecticut residents. Merrick also highlighted recent fundraising gains (average annual fundraising recently near $130 million, up from about $80 million in the prior comparable period) and a growing endowment; the university reported an endowment above $600 million and said a public campaign would seek to raise the endowment toward $1.5 billion.

On federal research policy, university officials warned of a proposed change that would limit indirect cost (IDC) recovery on federal grants (the manuscript and hearing record cited a proposed cap to roughly 15 percent in the administration's guidance). The provost and CFO said the university is coordinating with other institutions and federal stakeholders to quantify impacts. During questioning a legislative member cited an estimate of about $35 million of lost IDC revenue for UConn if that cap were implemented; UConn finance staff confirmed such estimates are part of their internal analysis and that the university is actively engaged with federal offices and other institutions to seek clarity and mitigation.

Officials told the committee the governor's recommended budget reduces some one-time support and that the university is supplying the committee with more detailed quarterly budget projections and a strategic enrollment plan to increase revenue without lowering academic quality. Nathan Firths, vice president for student life and enrollment, said the university has grown undergraduate headcount to more than 25,000 and that growth occurred across most regional campuses; he emphasized recruitment and outreach partnerships with Hartford, New Haven and other municipalities and with Promise programs that the university said boosted yield in targeted cities.

Merrick and administrators discussed initiatives the university is pursuing with federal and private partners, including regional innovation proposals in quantum and AI manufacturing. The university said it participated with Yale and other Connecticut partners on a planning grant and would seek larger federal awards as solicitations are reissued. Officials also described joint grants and cooperative hires with research partners, including industry and Jackson Laboratory collaborations.

During review of campus housing proposals, administrators acknowledged a Stamford property transaction that has prompted community concern because some current tenants were notified of an ownership change; university officials said the owner approached the university and that planned occupancy was intended to be cost-neutral and to expand housing capacity for Stamford students. Nathan Firths said: "Our understanding was that any occupancy that we would have in the building would not displace anybody." Legislators asked administrators to provide fuller documentation of outreach and relocation options for displaced tenants and to confirm whether public funds were used; university staff said no public funds were used for the Stamford transaction.

University leaders asked the committee for continued engagement and pledged to provide institution-level quarterly financials, additional breakdowns of where the governor's proposal differs from the university request, and program-level analyses of the impact of any funding reductions on student success and research.