DALLAS — Officials with the University of Texas at Arlington will begin offering buyouts to faculty and staff amid funding reductions and federal restrictions.

UTA President Jennifer Cowley introduced a voluntary separation and a phased retirement program earlier in the week. UTA leaders will offer financial incentives to staff for them to phase out of employment by the end of May.

In an email sent to faculty, staff and students on Monday, Cowley said the programs were needed to adapt to “significant shifts in federal funding and policy.” According to UTA’s website, the new programs will provide “flexible options for those who may be considering retirement or other career decisions.”

Employees eligible for retirement can fill out an interest form to be accepted into the voluntary separation program. Once accepted, they will be eligible to receive an incentive payout “equal to 9- or 12-month base salary” payable in August 2026, according to the website.

Earlier this year, the university paused hiring and made other budget cuts due to a reduction in federal funding — a decrease from what university officials said was about 17% of its overall funding: 8.8% for student financial aid and 8.5% for grants and contracts. Cowley said in an address to UTA’s staff that officials saw a decline in research grants, pauses on visas for international students and budget proposals that could negatively impact financial aid.

University officials said they expect almost a 5% decrease in total revenue and transfers in 2026, according to a University of Texas System budget document from August. That translates to a $44.2 million decrease, and the institution’s operating budget for the year is $876.7 million.

UTA serves over 42,000 students, making it the fifth-largest public university in the state. It offers nine schools and colleges, and it is designated as a Research-1 university — a classification given to the top research institutions in the country.