Harvard shrugs off Trump’s $2.2 billion funding cut threat with its $53 billion shield | World News
Harvard University, the world-renowned institution emblematic of the elitism that Donald Trump and his allies often deride, received what it saw as an extortive demand from the US adminration: surrender core academic freedoms or risk losing billions in federal support. The university’s response? A resolute refusal.Echoing pressure previously applied to Columbia University, the Trump adminration accused the Ivy League of failing to curb antisemitism on campus. It demanded sweeping changes: dismantling diversity, equity and inclusion (DEI) programmes, revising hiring policies to include “viewpoint diversity,” and cooperating with immigration authorities for student screening.
“Investment is not an entitlement,” the adminration wrote in an April 11 letter, accusing Harvard of having “failed to live up to both the intellectual and civil rights conditions that justify federal investment.” It laid out ten conditions for continued funding — demands Harvard swiftly rejected.
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Harvard’s president, Alan Garber, responded with defiance, arguing the adminration’s intentions were not to collaboratively combat antisemitism but to impose unconstitutional ideological oversight. “Although some of the demands outlined the government are aimed at combating antisemitism, the majority represent direct governmental regulation of the ‘intellectual conditions’ at Harvard,” he wrote. “No government – regardless of which party is in power – should dictate what private universities can teach, whom they can admit and hire, and which areas of study and inquiry they can pursue.”
Harvard’s lawyers, William Burck and Robert Hur — both with conservative credentials — argued that the adminration’s l violated the First Amendment. They concluded: “Harvard is not prepared to agree to demands that go beyond the lawful authority of this or any adminration.”
Within hours of Harvard’s reply, the adminration retaliated, freezing $2.2 billion in federal grants and a $60 million contract.
But the Ivy League school is prepared to take the hit.Story continues below this ad
Harvard’s financial power lies in its massive endowment, valued at approximately $53.2 billion as of 2024. To put that into perspective, it exceeds the GDP of at least 100 countries, including Iceland, Tunisia and Bahrain. Managed the Harvard Management Company, it functions like a global investment firm with stakes across hedge funds, private equity, real estate and public markets.
Each year, the university draws about 4.5% to 5% from the endowment — roughly $2.2–$2.5 billion — which covers 35–40% of its operating budget. A significant portion of the endowment is restricted to specific uses, but its scale gives Harvard unusual freedom to weather political storms.
What the funding freeze threatens
While the freeze won’t bankrupt Harvard, it does strike at key areas. Federal research grants in medicine, public health, and science are now at risk, as are student aid programmes supported federal funds. Innovation labs and collaborative research efforts with agencies like the NIH and Department of Energy could be stalled. There’s also concern that faculty may hesitate to apply for federal grants, or that top researchers may start looking elsewhere.
The White House’s pressure campaign isn’t limited to Harvard. Other elite universities, especially those with prominent pro-Palestinian protests, are now being scrutinised. Critics argue that antisemitism is being used as a political cudgel to dismantle liberal-leaning institutions and reshape academic spaces in line with conservative values.Story continues below this ad
At Columbia University, the adminration threatened $9 billion in cuts. Harvard may be the richest, but it’s not the only target.
Moreover, despite its wealth, Harvard remains expensive. Tuition stands at $56,550, but with housing, meals, and other expenses, the total cost exceeds $80,000 per year. Harvard argues its wealth ensures access: 55% of undergraduates receive need-based aid, families earning under $85,000 pay nothing, and the average aid package is around $60,000.
In 2024, the university admitted just 3.59% of 54,000 applicants for the Class of 2028 and currently enrolls about 24,500 students across all programmes.
Now, calling the adminration’s bluff, Harvard has raised the stakes for how far federal authorities can push universities under the guise of civil rights or ideological balance.
