After the Trump administration frozen more than$ 2.2 billion in federal funding, putting pressure on Harvard University as it revises its diversity, equity, and inclusion ( DEI ) programs.
Harvard, which has the largest school endowment in the world, rely heavily on federal funding for research and student support, which is a crucial source of income for the decision. The school received roughly$ 686 million in federal grants in the fiscal year 2024, which accounts for roughly 68 % of all sponsored research funding.
Harvard received$ 2.5 billion in federally financed support and an extra$ 2.7 billion from various sources between 2020 and 2023, making it among the best consumers of national funding for school research and development. This placed Harvard among universities like Stanford, Cornell, and the University of Pennsylvania, highlighting how heavily reliant it heavily on national resources to keep up its analysis system. In terms of overall R&D expenses, Harvard placed just behind Johns Hopkins and the University of Michigan, according to data from the National Center for Science and Engineering Statistics.
The endowment of Harvard increased by$ 2.5 billion to$ 5.3 billion in 2024, according to Harvard’s financial review, following a 9.6 % return on investment. However, a significant portion of the fund is reserved for particular purposes. The university kept$ 2 billion in wet short-term investments to meet functional needs, which is significantly above its minimum liquidity policy, but these resources are insufficient to cover long-term costs if federal support is still suspended.
Harvard has instituted a hiring ice and is reevaluating investment tasks in response to the crisis. Alan Garber, president, emphasized that the organisation would not succumb to social pressure. He declared,” We will not give up our freedom or give up our democratic right.”
Additionally, Harvard increased its total obligations to$ 7.1 billion with new bond issues to finance capital growth and refinancing older loan. The college still had its top-tier AAA/Aaa record scores despite the additional debt.
In the meantime, Harvard expands its economic assistance program. Higher scholarships led to a slight decrease in online bachelor education income. The school now covers all charges for people earning under$ 85 000 in full tuition, housing, and food, and provides$ 2, 000 in startup and build grants to help low-income individuals who are entering and graduating from college.
However, the elimination of governmental funding puts in risk core activities. Perhaps a well-known organization like Harvard can continuously remove open investment with internal funding, particularly in high-cost areas like medical research, warn experts.
Harvard’s stance is described as” a principled stand for academic independence,” according to former president Barack Obama. He claimed that the reply from the university raises more general concerns about the freedom of higher education institutions under democratic attention.
