How Trump Took on the World's Richest College

Financial Risks & Challenges - The Trump administration's actions, including revoking federal research grants, could lead to a billion-dollar budget shortfall for Harvard annually [11] - The federal government revoked approximately $2.6 billion in federal research grants [5] - A tax on endowments was initially 1.4% of net investment return but was raised to as high as 8% [9] - Harvard's tax benefits were valued at least $465 million in 2023 [11] Harvard's Financial Status - In 2024, $686 million, equivalent to 11% of Harvard's operating revenue, originated from federal research grants [6] - Harvard's endowment is $53 billion, but most of it is earmarked for specific causes and illiquid investments [7][8] Political & Social Issues - The Trump administration is using federal government leverage to extract concessions from Harvard, setting an example for higher education [3] - The administration has subpoenaed data on Harvard's international students, with 27% of all students at Harvard being international students [12][13] - Harvard faced criticism regarding anti-semitism on campus after the Israel-Hamas conflict, leading to the resignation of its president [16][17][18] Harvard's Response & Stance - Harvard is fighting back against the Trump administration, including suing to challenge the freezing of federal grants and efforts to ban international student enrollment [24][25] - Harvard argues that the administration's fight is about exerting control over the university rather than encouraging diversity of viewpoints [19] - Harvard is pushing back against government demands, asserting that no government should dictate what private universities can teach, whom they can admit and hire, and which areas of study they can pursue [19]