The University of Southern California (USC) is navigating a significant financial crisis and ongoing campus challenges under its new president, Graham Kim, a former federal prosecutor and five-year general counsel for the university. Kim, who assumed the presidency in 2025 following Carol Folt’s departure, inherited a budget deficit exceeding $200 million and has since implemented extensive cost-cutting measures, including the layoff of more than 900 employees across various departments.
USC’s fiscal difficulties stem from multiple factors, including escalating athletics expenses, pandemic-related costs, and major legal settlements. The university’s health system, Keck Medicine of USC, has faced deficits in the tens of millions of dollars, prompting layoffs and operational reviews aimed at reducing expenses while maintaining patient care quality. Last month, the Viterbi School of Engineering also conducted layoffs as part of these efforts. Despite these challenges, Kim expressed optimism, indicating that USC is on track to surpass the $30 million surplus he projected earlier this year, with final financial results still pending.
Kim emphasized the need to restore public trust in higher education, an area where confidence has declined nationally. USC’s reputation has been affected by past controversies, including a $1.1 billion settlement related to sexual abuse allegations against a campus gynecologist, its role in the "Varsity Blues" admissions bribery scandal, and disputes surrounding free speech and campus activism. To address polarized viewpoints, Kim launched the Open Dialogue Project in 2025, hosting speakers from diverse ideological backgrounds. Recently, USC has improved its standing on free speech metrics, rising significantly in national rankings.
Athletics remain a contentious issue, particularly regarding the performance of the football team. Recent fan chants have called for the dismissal of coach Lincoln Riley amid mixed results, though Kim declined to comment on the financial feasibility of replacing him, focusing instead on upcoming games and pursuing the best possible season.
USC is also engaged in a legal challenge with the United Faculty-UAW union after non-tenure-track faculty voted overwhelmingly in favor of unionization. The university has asked the National Labor Relations Board to review the election on the grounds that the union’s scope is too broad, while some faculty have expressed support for the union during campus events.
Admissions policies are also under review. While USC currently operates as test-optional and does not require standardized tests for undergraduate applicants, the institution is considering adjustments, particularly for STEM fields. This comes amid discussions within the University of California system about resuming SAT and ACT requirements. USC plans to maintain holistic admissions practices, including considering family ties to the university, despite a state ban on legacy preferences.
Kim highlighted USC’s commitment to diversity, pointing to the university’s large population of transfer students, Pell Grant recipients, first-generation students, and international enrollees—who make up about 26% of the student body—as evidence against the perception that USC primarily serves wealthy and well-connected applicants.
In national policy interactions, USC rejected a Trump administration proposal last year that would have imposed caps on international undergraduates, required standardized testing, and frozen tuition in exchange for favorable access to federal research grants. Kim defended the university’s cautious approach to the proposal and disputed claims that USC swiftly complies with federal demands, noting the importance of thorough deliberation.
Meanwhile, USC is investing heavily in artificial intelligence research, supported by a $200 million gift from Nvidia board member Mark Stevens and his wife, Mary Stevens. Kim acknowledged concerns raised by AI leaders about the technology’s rapid development and potential risks, emphasizing USC’s role in promoting ethical and safe AI use.
Looking ahead, USC anticipates significant attention as the Coliseum, its historic stadium, will co-host the 2028 Olympic Games opening ceremony alongside SoFi Stadium in Inglewood. Kim expressed hope that the global event will showcase USC’s Olympic legacy and its broader contributions beyond athletics, inviting alumni and students worldwide to participate in the occasion.