University System of Maryland officials warn enrollment shifts and federal grant cuts threaten research and finances

University System of Maryland (USM) officials told the Transportation and the Environment Subcommittee that recent enrollment gains mask persistent, uneven losses at several campuses and that canceled federal awards and a reduced state appropriation are stressing university finances and research programs.

Sarah, an analyst from the Department of Legislative Services, said exhibits in the system overview show overall undergraduate enrollment increased but that the gain is heavily driven by the University of Maryland Global Campus (UMGC). Excluding UMGC, undergraduate enrollment remains below pre-pandemic levels, and several institutions—including Bowie and Towson—have seen notable declines. She also flagged a 9.5% drop in international enrollment last fall, concentrated in graduate programs and driven largely by changes at UMBC.

Chancellor Perman told lawmakers the system recorded one of its largest head counts last fall and a record number of first‑year and transfer students, but he warned earlier COVID-era losses persist at regional comprehensives. "We are going to put students first," the chancellor said, stressing that university aid is a central retention tool. He cited system figures showing USM awarded $265 million in university aid last year, including about $107 million in need‑based aid, and said students who receive institutional aid persist and graduate at higher rates.

Officials and analysts also discussed risks to research funding. DLS and USM staff reported that 219 federal awards were canceled during the audit period, totaling roughly $133 million in awards lost; UMB accounted for the largest single loss reported (about $49.9 million). Chancellor Perman said the cancellations have already led to layoffs at UMB (about 100 positions) and that more jobs remain at risk if cancellations continue. He warned that some federal proposals to cap indirect cost reimbursement would ‘‘devastate the research enterprise’’ if implemented.

David, the other analyst, described UMGC’s nationwide marketing campaign—about $350 million since 2019—and said UMGC reported a multi-year payback on advertising that helped regain enrollment momentum. The audit of UMGC Ventures and Accelerad found problems including a partial sale of Helio Campus with insufficient explanation of price and buyer selection, an abandoned IT product, and contingency fees paid without documentation. DLS recommended committee narrative requesting UMGC report on reintegration of Ventures and Accelerad and on the status of contracts and recovery of seed investments.

There was no formal committee action taken during the hearing. Legislators asked about marketing strategies for residential campuses and the state’s role in early‑college pathways; Chancellor Perman described targeted outreach, transfer incentives and early‑college expansions as methods to grow enrollment for institutions with weaker applicant pipelines.

The hearing also included a two‑minute public comment by Dionne Williams of AFSCME Local 1072, who thanked the state for funding negotiated wage increases but urged more equitable treatment of smaller campuses, resolution of classification and compensation issues, conversion of long‑term contractual workers to full employment, and attention to telework bargaining. "We hope the legislature supports our agreement," Williams said.

Next steps: committee staff requested follow‑up details in DLS narrative including UMGC’s national marketing report and UMGC’s reintegration plan for Ventures/Accelerad. The hearing moved to other agency budgets after the USM segment concluded.