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18-04-2025
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Harvard University Faces Financial Crisis Under Trump

Date: 18-04-2025
Sources: nytimes.com: 2 | edition.cnn.com: 1
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Image Prompt:

A prestigious university with an old, grand campus, surrounded by protesters and supporters, holding signs and banners, amidst a backdrop of controversy and financial uncertainty.

Summary

Harvard University is facing a financial crisis after resisting the Trump administration's demands, resulting in a freeze on $2.2 billion in grants and threats to revoke its tax-exempt status. Despite having a $53.2 billion endowment, the university is struggling due to restrictions on its funds and reliance on federal research grants. The crisis has sparked a surge in donations from supporters and alumni, who see Harvard's stand as a symbol of resistance to the administration.

Key Points

  • Harvard University's resistance to Trump administration demands has led to a financial crisis, with $2.2 billion in grants frozen and tax-exempt status threatened.
  • Despite a $53.2 billion endowment, Harvard is struggling financially due to restrictions on its funds and reliance on federal research grants.
  • The crisis has sparked a surge in donations from supporters and alumni, who see Harvard's stand as a symbol of resistance to the administration.

Articles in this Cluster

Harvard’s Stand Against Trump Is Helping It Raise More Money - The New York Times

18-04-2025

Harvard University's resistance to the Trump administration's demands has prompted a surge in donations to the institution. After the government announced a $2.2 billion funding freeze and threatened to revoke Harvard's tax-exempt status, alumni and supporters rallied to show their support. Samuel Graham-Felsen, a novelist and freelance writer, donated $108, saying "the more Trump punishes Harvard financially, the more I will donate." Others, including Gil Pimentel and Mark Pelofsky, also made donations, citing their desire to support Harvard's stand against the government. The university's actions have been seen as a symbol of resistance to the Trump administration, inspiring others to donate. Even some critics of Harvard have given the institution credit for standing on principle, with some, like Lane Glenn, president of Northern Essex Community College, expressing qualified support.

Harvard has an endowment of over $50 billion. So why do federal cuts of a few billion matter? | CNNClose icon

18-04-2025

Harvard University is facing financial pressure from the Trump administration despite having a $53.2 billion endowment. The administration has frozen over $2.2 billion in federal grants and contracts and is threatening to revoke Harvard's non-profit tax status and ability to enroll foreign students. Experts say that while Harvard's endowment is substantial, it is not easily accessible due to restrictions and illiquid assets. About 80% of the endowment is earmarked for specific purposes, and the university can only spend a small fraction of it each year. Harvard has been funding nearly two-thirds of its operating expenses from sources other than the endowment, including federal research grants and tuition. The university is considering its options and has seen a surge in donations, but may need to weigh the risks of dipping into its endowment to offset the financial impact of the administration's actions.

Pride and Dread in Harvard Yard as Trump Wars With the University - The New York Times

18-04-2025

Harvard University is facing a financial crisis after standing up to President Trump's demands, resulting in the freezing of $2.2 billion in grants, threats to revoke its tax exemption, and potential blocks on enrolling international students. The Harvard T.H. Chan School of Public Health, which relies heavily on federal funding, is particularly affected, with nearly half its budget at risk. Faculty members and students are struggling to cope with the uncertainty, with some expressing anxiety over potential job losses and deportation threats. A town hall meeting revealed a dire financial situation, with layoffs and budget cuts already underway. Hundreds of students and faculty members rallied in Harvard Yard to condemn the Trump administration's actions, with some calling it an existential fight for the university's survival.