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Despite budget cuts, Eisgruber says municipal commitments to continue as planned

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University President Christopher Eisgruber ’83 at his annual meeting with the Princeton Council.
Toby Chang / The Daily Princetonian

University President Christopher Eisgruber ’83 met with the Princeton Council on Monday for its annual meeting to discuss town-gown relations. Amidst widespread budget cuts, Eisgruber said the University will maintain its existing commitments on voluntary contributions to the municipality. Councilmembers acknowledged the impacts of budgetary constraints and largely refrained from making further financial “asks” to the University.

“We have an agreement with this town where our voluntary contribution will increase year over year 4 percent, and we intend to adhere to that commitment,” Eisgruber said. “We regard that as an important commitment that we have made, both for our partnership and for the University's mission.”

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“Traditionally, we see this [meeting] as an opportunity for us to … make our ask,” Councilwoman Leticia Fraga said. “But I’m not going to do that tonight.”

The meeting with Eisgruber and the Council has occurred every year since he took office in 2013. This year’s discussion centered around financial challenges, continued federal attacks on universities, and long-term goals.

Citing a shared feeling of financial strain, Fraga noted, “We face challenges that threaten our ability to sustain services, both those that enhance daily life and those that are essential to our community."

“It’s clear to me that you guys are in a position where you have to look at things very carefully, as do we. We no longer want to look at you as the golden goose, but as just a goose,” Councilman Leighton Newlin said.

In his opening statement, Eisgruber said that threats to federal funding and academic freedom — challenges that were discussed in last year’s meeting — persisted. He referenced his annual “State of the University” letter from this February, titled “From Growth to Focus,” in which he discussed declining long-term return expectations on the University’s endowment. The Princeton University Investment Company recently reduced return expectations from 10.2 percent to 8 percent.

In 2024, the University announced a five-year plan to make voluntary contributions totaling nearly $40 million towards the municipality. The funds include investments in infrastructure and public services. The contributions are set to increase by 4 percent year-over-year through 2028.

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Councilman Brian McDonald asked Eisgruber about supporting each other in the context of the Trump administration’s continued attacks on private universities, acknowledging the mutually beneficial relationship between academic institutions and the country’s prosperity.

“The partnership model has weakened, and there is no question that this will hurt our country now and for decades to come,” McDonald said. “What can we do, and what can members of our community do to support the university and its peer institutions?”

Newlin, who previously served as the liaison for the Princeton Housing Authority, suggested the University could be more involved in building affordable housing for its staff. Newlin proposed a formal partnership between the University and the Princeton Housing Authority. He stressed that the proposal was a “vision, not an ask.”

“My vision is for the University to, at some point, enter into a formal partnership with the Princeton Housing Authority … with a meaningful commitment to supporting members of the University’s workforce,” said Newlin.

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Newlin also questioned Eisgruber about the $1.25 million settlement that the University agreed to contribute to the Witherspoon-Jackson Development Corporation after a lawsuit was filed in 2016 to overturn the University’s tax-exempt status.

“Where is the transparency? Where is the accountability? Where are the tangible results tied to that investment?” asked Newlin.

Eisgruber did not directly answer the questions regarding the settlement, and instead suggested a general goal towards affordability and emphasized future collaboration.

“I respect the many concerns that you raise,” said Eisgruber. “We’re very interested in making sure that we can work with this council and the town to ensure that the zoning is appropriate around potential projects that I think would be very beneficial, not just to the University, but to the town,” he continued.

Council members continued to discuss other ways in which the University’s relationship with the greater Princeton area has evolved.

“A top priority for me has been rebuilding the relationship with the University in a way that I feel like it has frayed,” said Councilwoman Mia Sacks.

Fraga, who is currently serving her final term, reflected on the past several years of collaboration between the University and the municipality. She spoke about the collaboration with Habitat for Humanity, the Paw Points program expansion, and community building events hosted at the Princeton University Art Museum.

Council President Michelle Pirone Lambros raised concerns over declining participation in the Princeton Fire Department Associate Member Program. The program, first piloted in 2009 to bolster the fire department’s volunteer force, enables University employees to volunteer as firefighters during their work shifts. Lambros highlighted revitalizing the program as another opportunity for collaboration.

The meeting concluded with remarks from Mayor Mark Freda, who reaffirmed a commitment to a continued dialogue.

“In today’s world, people being able to just have an honest, open dialogue is sometimes a challenge. We truly appreciate all the effort, the respect, and everything that goes along with that between the University and the town,” said Freda.

Toby Chang is a staff News writer from Prescott, Ariz. He can be reached at toby.chang[at]princeton.edu.

Please send any corrections to corrections[at]dailyprincetonian.com.

A correction was made on March 25, 2026: a previous version of this article misrepresented the total voluntary contributions to the municipality the University will make in its five-year plan. It is nearly $40 million, not over $50 million. The latter figure includes contributions to both the municipality and nonprofits. The ‘Prince’ regrets this error.