What Happened to University of Southern California?
The University of Southern California (USC) has navigated a period of significant change and challenge, including leadership transitions, financial restructuring, and campus protests, while continuing to achieve notable academic and athletic successes. As of 2026, the university is under interim leadership, implementing new admissions policies, and working to address a substantial budget deficit.
Quick Answer
The University of Southern California is currently under the interim presidency of Beong-Soo Kim, following Carol Folt's resignation in July 2025. The university is addressing a significant budget deficit through layoffs and austerity measures. In admissions, USC expanded its early decision option for the 2026-2027 cycle and discontinued the Common App's courses and grades section, while maintaining legacy admissions. Athletically, USC continues a strong streak of national championships, including women's water polo in 2026.
📊Key Facts
📅Complete Timeline15 events
USC Cancels Valedictorian's Commencement Speech
USC announced the cancellation of pro-Palestinian valedictorian Asna Tabassum's commencement speech, citing security concerns, which sparked widespread criticism.
Pro-Palestinian Encampment Established on Campus
An occupation protest began at Alumni Park as part of pro-Palestinian demonstrations, leading to 93 arrests by LAPD and USC Police on the first night.
Main Commencement Ceremony Canceled
USC canceled its main commencement ceremony for the Class of 2024 due to safety concerns related to the ongoing protests.
Police Clear Campus Encampment
Around 100 LAPD officers in riot gear raided and cleared the pro-Palestinian encampment at Alumni Park in the early morning.
Continued Protests During Fall Convocation
Students held smaller protests outside the Coliseum during the fall convocation, which was moved from Alumni Park due to security concerns.
President Carol Folt Announces Resignation
President Carol Folt announced her plans to retire as USC president on July 1, 2025, after five years in the role, citing a desire to return to teaching.
USC Implements Financial Austerity Measures
USC announced immediate measures to limit and reduce expenditures, including permanent budget reductions for administrative units and schools, and restrictions on discretionary spending, to address financial stress.
Carol Folt Retires, Interim President Takes Over
Carol Folt officially retired as USC President, and Interim President Beong-Soo Kim assumed leadership.
Layoffs Announced Amidst $200M Deficit
Interim President Beong-Soo Kim announced plans for layoffs and other budget austerity measures to tackle a $200 million operating deficit.
USC Rejects Trump Administration Education Compact
USC rejected a controversial education compact from the Trump administration that offered preferential federal funding in exchange for aligning with conservative policy directives.
USC Continues Legacy Admissions
Interim President Beong-Soo Kim confirmed that USC would continue to consider legacy status in its admissions process for Fall 2025, despite external pressure.
Over 900 Layoff Notices Issued
USC reported that over 900 layoff notices had been issued across the university and health system since July, as part of financial resilience efforts.
Major Admissions Changes for 2026-2027 Cycle
USC announced the expansion of its early decision option to nearly all undergraduate programs and the discontinuation of the Common App's courses and grades section for the 2026-2027 admission cycle.
Women's Water Polo Wins National Championship
USC's women's water polo team won the 2026 NCAA Championship, marking the sixth consecutive year USC athletics has secured at least one national title.
Academic Honors Convocation and Research Highlights
USC held its Academic Honors Convocation, celebrating student achievements. Recent research highlights include brain interface testing for robotic legs and a new initiative, ShadeLA, for urban tree canopy expansion.
🔍Deep Dive Analysis
The University of Southern California (USC) has experienced a tumultuous yet transformative period from 2024 to early 2026, marked by significant internal and external pressures.
One of the most prominent developments was the resignation of President Carol Folt, announced in November 2024 and effective July 1, 2025. Folt, who became USC's first permanent female president in 2019, was tasked with restoring the university's reputation after a series of high-profile scandals. Her tenure saw expansion in computing, health sciences, athletics, and financial aid. However, her decision to step down came amidst criticism over her handling of pro-Palestinian demonstrations on campus in Spring 2024. Interim President Beong-Soo Kim assumed leadership, facing immediate challenges.
Financially, USC has been grappling with a substantial structural deficit. In fiscal year 2024, the deficit was reported at $158 million, which then ballooned to over $200 million by fiscal year 2025. This led to significant austerity measures, including budget reductions for administrative units, restrictions on discretionary spending, and a freeze on merit raises for the 2026 fiscal year. Most notably, the university initiated widespread layoffs, with over 900 notices issued across the university and health system since July 2025, though efforts were underway to place up to 200 impacted employees in new positions. The university aims to eliminate its long-term deficit by the end of the current fiscal year (FY26).
Campus life was significantly impacted by pro-Palestinian protests in April and May 2024. These demonstrations, part of a national movement for universities to divest from Israel, led to the cancellation of the main commencement ceremony due to safety concerns. Police cleared encampments, resulting in numerous arrests. Tensions continued into the Fall 2024 semester, with smaller protests occurring during convocation. In a notable political stance, USC, under Interim President Beong-Soo Kim, rejected a controversial education compact from the Trump administration in October 2025, which aimed to impose conservative political priorities on campus in exchange for federal funding.
Academically and athletically, USC has continued to evolve. For the 2026-2027 admissions cycle, USC announced major changes, including the expansion of its early decision option to nearly all undergraduate programs and the discontinuation of the Common App's courses and grades section, aiming to streamline the application process. Despite calls for change, USC confirmed in October 2025 that it would continue to consider legacy status in its admissions process. On the athletic front, USC has maintained an impressive streak, winning at least one national championship for six consecutive years, including the Women's Water Polo NCAA Championship in 2026. The athletics department also achieved record academic success, with a 94% Graduation Success Rate in 2025.
What If...?
Explore alternate histories. What if University of Southern California made different choices?