Mujica, a former Marxist guerrilla known by the nickname 'Pepe', became a beloved figure for his simple lifestyle.
Cuts come in addition to $2.2bn in suspended contracts and grants, as US president seeks to pressure Ivy League school.
Bayer Leverkusen's Xabi Alonso poised to replace Real Madrid manager Carlo Ancelotti, according to media reports.
The trial resumes on Monday in which the American music mogul faces charges, including sex trafficking and racketeering.