$53.2 billion. $22.3 billion. $14.8 billion. These are the respective endowments for fiscal year 2024 of Harvard University, the University of Pennsylvania, and Columbia University. Collectively, the eight Ivy League schools’ endowments exceed $185 billion. While these robust provisions are paramount in supporting student financial aid, faculty salaries, research, and other university programs, federal funding is also important in upholding the missions of these institutions. However, abrupt cuts in government aid to Penn and Columbia in the past few weeks have raised concerns about the financial stability of these schools and peer institutions, including Harvard.
In anticipation of the challenges following the nation’s shift to a new presidential administration, Harvard President Alan M. Garber ’76 issued “Emergent Regulations and Legislation” on Jan. 28—a statement to University affiliates just a few days after the inauguration. “In these challenging times, our efforts will be guided by our values and commitments: supporting academic excellence and the pursuit of knowledge; championing open inquiry, constructive dialogue, and academic freedom,” he wrote.
Other university leaders and students across the nation echoed Garber’s sentiments. “Now more than ever, we must rely on our values of diversity, inclusion, respect, and collaboration… By acting together, we will be able to marshal our collective resources to overcome this global threat,” said Yale University Deputy Dean and Chief Diversity Officer Dr. Darin Latimore.
Regardless of these affirmations, President Donald Trump’s administration focused early on addressing what it viewed as an overly DEI-tolerant higher education system. His administration called attention to ongoing incidents of antisemitism on college campuses and pledged to reform how universities handle these issues.
Federal Funding Withdrawals
On Feb. 26, the Trump administration released a list of 10 U.S. colleges and universities placed under scrutiny for “incidents of antisemitism.” This came about a month after Trump signed an executive order aimed at combating nationwide antisemitism. Last year, Harvard was the site of a pro-Palestinian encampment, which was named alongside other public and private institutions, including George Washington University; the University of California, Los Angeles; the University of California, Berkeley; and the University of Minnesota.
Faculty members at these schools reassured both the government and the public of their unwavering commitment to balancing inclusivity with freedom of speech. However, the Trump administration remained unconvinced and escalated its actions.
Columbia University, already in the spring 2024 tabloids due to protests relating to the Israel-Hamas war, drew further attention this year. On March 7, the Trump administration withdrew $400 million in federal funding “due to the school’s continued inaction in the face of persistent harassment of Jewish students.”
According to the Columbia Daily Spectator, the University relied on $1.3 billion in federal funding for FY 2024. With about one-third of this sum now withdrawn, Columbia’s financial stability is at risk. In response, Secretary of Education Linda McMahon addressed concerns on X, reassuring students of Columbia and other similarly impacted institutions that open communication with Katrina Armstrong, interim president of Columbia, was ongoing.
The Trump administration extrapolated this decision as part of a broader push for compliance across the American higher education system. “Universities must comply with all federal antidiscrimination laws if they are going to receive federal funding,” the executive order read. The announcement emphasized that these cancellations were just the first round, with additional cuts expected.
Penn became the latest target of these funding cancellations after a broader executive investigation into over 50 institutions launched on March 14 found infringements in Title IV policies. This followed a preliminary review of Penn’s transgender athlete regulations in February. On March 19, the Trump administration paused $175 million in federal funding due to the University’s “policies forcing women to compete with men in sports,” according to a tweet from the White House’s Rapid Response account. The tweet—which included a video segment from “Fox News”—further confirmed that, according to a senior Trump administration official, these funding freezes were “just a taste of what could be coming down the pipe for Penn.”
Though not yet subjected to monetary withdrawals, similar to McMahon’s comments, the University of California system outlined its next steps in addressing the financial uncertainties caused by federal scrutiny. This came after the inclusion of both UCLA and UC Berkeley on the Feb. 26 list. As public institutions, UCLA and UC Berkeley would face significant challenges if withdrawals of federal funding were to go through.
“The University of California is unwavering in its commitment to combating antisemitism,” a UC spokesperson said in a statement to the Independent. “We look forward to meeting with the task force members and sharing the many steps the University of California system has taken to foster an environment free of harassment and discrimination.”
Given its placement on the Trump administration’s initial shortlist, Harvard is similarly increasingly vigilant, especially considering the school’s dependence on federal funds. In FY 2024, Harvard received $686 million in federal funding, which accounted for an estimated 68% of the University’s total sponsored revenue for the year.
Due to the nature of the situation, a Harvard spokesperson could not comment on Harvard’s plans if government aid were to be curtailed.
The Weight of These Dollars
The financial retribution of the Trump administration’s actions on higher education threatens to disrupt the entire system’s functionality and growth.
In a December interview with the Harvard Crimson, Garber emphasized the University’s reliance on government funding. “We could not carry out our mission the way we do now without substantial federal research support, nor could we provide the benefits to the nation that we do now without that support,” he explained.
A financial overview of FY 2024 provided by Harvard Vice President for Finance Ritu Kalra voiced similar concerns. “Federal funding plays a pivotal role in these endeavors, supporting groundbreaking scientific discoveries that fuel innovation and economic growth in our local community and around the world,” the document read.
Penn corroborated these statements in a statement released to affiliates on March 10. “Changes to federal research funding could significantly reduce our operating budget,” Provost John L. Jackson Jr. and Senior Executive Vice President Craig R. Carnaroli declared.
“The scope and pace of the possible disruptions we face may make them more severe than those of previous challenges, such as the 2008 financial crisis or the COVID pandemic,” they continued.
As Jackson and Carnaroli indicated, it remains unclear whether federal task forces will conduct further campus visits with additional fiscal actions. Nonetheless, precautionary measures are underway at universities across the nation.
In the same statement, Penn explained that they are currently undergoing a review of all capital expenditures, freezing the majority of staff hiring, halting faculty mid-year salary adjustments, evaluating hiring practices, imposing a five-percent cut on “noncompensation expenses,” and working to maximize the efficiency of all operational funds.
Other universities are taking similar steps. On March 10, Harvard announced they would “implement a temporary pause on staff and faculty hiring across the University.”
“We need to prepare for a wide range of financial circumstances, and strategic adjustments will take time to identify and implement,” Harvard’s report continued.
This wave of financial distress has underscored the extent of private universities’ reliance on federal funding, an issue that had not been fully understood until this recent saga.
However, public universities are also affected. On March 21, the UC system likewise declared a hiring freeze in addition to other “cost-saving measures.” Yet, regardless of these drastic policy changes, the majority of these universities have reaffirmed their commitment to academic freedom and excellence regardless of these executive orders.
“With careful financial management, however, Penn is well-positioned to navigate them,” Jackson and Carnaroli stated.
Harvard leaders—including Garber, Provost John F. Manning ’82, Executive Vice President Meredith Weenick ’90, and Kalra—echoed these thoughts in a joint statement.
“Though current uncertainties touch every corner of the University and of higher education, we are confident that we will be able to address the present challenges together as we continue to pursue academic excellence in service to the nation and the world,” they stated.
Sara Kumar ’27 (sjkumar@college.harvard.edu) is the News Editor of the Harvard Independent.