University of Maine layoffs raise H-1B questions

# University of Maine System Reports 19 H-1B Labor Applications Amid $19 Million Budget Shortfall

The University of Maine System filed 19 H-1B labor-condition applications during fiscal year 2026 as its flagship campus prepares workforce reductions to address a projected $19 million budget deficit for fiscal year 2028. The developments have drawn attention to the university system’s employment decisions as administrators seek to reduce operating costs, eliminate vacant positions and consolidate services.

According to an October 30 report by Campus Reform, federal employment records compiled by MyVisaJobs show that the system filed 19 labor-condition applications (LCAs) and received approval for 13 H-1B petitions from U.S. Citizenship and Immigration Services (USCIS) during fiscal 2026. These figures cover the entire university system and do not establish how many H-1B-sponsored employees work at the flagship campus in Orono.

## Budget deficit drives planned workforce reductions

The University of Maine is developing a plan to address its projected $19 million shortfall through spending reductions and additional revenue. In an October 21 budget update, university President Joan Ferrini-Mundy and senior administrators outlined measures affecting both academic and nonacademic departments.

Academic Affairs has committed to reducing its fiscal 2028 base expenses by $10 million. Nonacademic units face the remaining $9 million gap. Planned spending cuts and revenue increases are expected to cover approximately $6 million of the nonacademic shortfall, leaving another $3 million unresolved.

Proposed measures include faculty and staff layoffs, eliminating vacant positions, reducing dependence on outside contractors, shortening certain annual appointments and consolidating university units. Administrators are also exploring ways to increase income through campus events, conferences and other activities.

University leaders warned in September that faculty retrenchments and staff layoffs would be necessary as the institution confronts its financial challenges.

## H-1B sponsorship figures draw attention

The system’s H-1B filings have attracted attention because they occurred while the university was preparing to reduce its workforce. However, the available records do not establish whether employees sponsored through the H-1B program work in departments facing potential layoffs or whether any sponsored employees will be affected by the planned cuts.

The university’s October 21 budget update did not identify departments employing H-1B workers or explain whether the workforce changes would affect foreign employees.

Campus Reform reported that it contacted the university for information about the number of H-1B-sponsored employees at the Orono campus, their distribution across departments and whether sponsorship would continue during the cost-cutting process. The report did not include a response from the university.

The figures therefore provide information about the system’s visa-related filings but do not, by themselves, establish a connection between H-1B sponsorship and the proposed layoffs.

## Enrollment and funding pressures add to financial challenges

The university has attributed its financial difficulties to rising operating costs, enrollment changes and uncertainty surrounding federal funding and policy. Administrators are working to improve student recruitment and retention while reviewing academic programs and operating expenses.

Maine Public reported in September that the university planned faculty and staff layoffs, reductions in vacant positions, consolidation of course sections and possible closures of programs with low enrollment.

The institution is also seeking additional revenue sources and working to reduce its reliance on temporary funding. University leaders are expected to provide further details during a November 2 budget session as they prepare the fiscal 2028 budget for consideration by the University of Maine System Board of Trustees.

## Labor-condition applications are not visa approvals

The distinction between labor-condition applications and approved H-1B petitions is important when interpreting the reported figures. Employers generally must obtain Department of Labor certification of an LCA before submitting the associated H-1B petition to USCIS.

The 19 LCA filings and 13 approved petitions are separate measures and should not be added together to calculate the number of workers or visas. Nor do the figures establish how many sponsored employees are currently working at the university.

As the University of Maine System works to close its projected budget gap, further clarification about staffing plans and visa sponsorship could help explain how these employment decisions fit within its broader financial strategy. For now, the available information does not demonstrate that H-1B-sponsored employees are directly connected to the planned workforce reductions.