Why Harvard's endowment won't save it from Trump
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Aïda Amer/Axios
Harvard's $53.2 billion endowment grants the university less protection against potential federal funding cuts than such a stacked bank account might suggest.
Why it matters: Elite universities like Harvard have massive endowments, but legal restrictions, donor intent and other red tape severely limit the flexibility the schools have to spend.
Threat level: The Trump administration has threatened to withdraw nearly $9 billion in grants over free speech concerns and charges of campus antisemitism.
- Harvard on Monday said it "will not surrender its independence or relinquish its constitutional rights," rejecting the White House's conditions for keeping the money in place.
- A federal joint task force announced within hours that it would freeze some $2.2 billion in federal funds Harvard receives.
By the numbers: Harvard got $2.4 billion from the endowment in fiscal year 2024. That made up about 37.5% of the university's $6.4 billion operating budget.
- $686 million: The amount of federal funding, about 16% of operating revenue.
- According to the Harvard Crimson, donations to the school dropped by more than $150 million in the last fiscal year.
- Some wealthy donors stopped giving because of the same campus culture concerns Trump cites.
Yes, but: Restoring funding for cut programs is more complicated than simply tapping into the old trust fund.
- When donors give money to the endowment, they often name programs, departments or uses for the funds.
- 70% of endowment distributions are restricted by donors and only 20% of funds can be used for discretionary spending, like bailing out programs and grants slashed by the Trump administration.
Zoom in: Harvard has put some measures in place to protect it from hard economic times.
- The school imposed a temporary hiring freeze in March.
- Harvard also got back into the debt market in March, issuing $450 million in tax-exempt bonds.
The bottom line: Harvard will certainly survive federal funding reductions, but it will likely mean changes to operations and financial maneuvers beyond relying on an endowment bailout.
Editor's note: This article was updated to reflect a change in the wording of Garber's letter after publication.