Harvard University is offering $750 million in taxable bonds this year to fill the gap in case the Trump administration pulls its federal funding.
This is the second time this year that the Ivy League school has issued bonds, bringing its total offering to $1.2 billion. Harvard stands to lose $9 billion in federal funding.
The Health and Human Services Department, the Education Department, and the General Services Administration will determine whether the university violated Title VI of the Civil Rights Act by allowing on-campus protests to escalate to the point of having antisemitic themes. The multi-agency task force canceled about $400 million worth of grants for Columbia University under President Donald Trump’s executive order on combating antisemitism. Harvard is also facing scrutiny for not following the president’s order to remove diversity, equity, and inclusion practices from schools.
“While the financial impact on the University resulting from the totality of potential developments at the federal level cannot be quantified at this time, any such developments may, directly or indirectly, have a material adverse effect on the current and future financial profile and operating performance of the University,” the university wrote in a statement.
University President Alan Garber has already signaled changes to the university since his predecessor Claudine Gay’s time in charge. Gay was the president during the campus protests and encampments that allegedly included antisemitic chants.
“Much is at stake here. In longstanding partnership with the federal government, we have launched and nurtured pathbreaking research that has made countless people healthier and safer, more curious and more knowledgeable, improving their lives, their communities, and our world,” Garber wrote. “But we are not perfect. Antisemitism is a critical problem that we must and will continue to address. As an institution and as a community, we acknowledge our shortcomings, pursue needed change, and build stronger bonds that enable all to thrive.”
HARVARD CONCEDES TO COMBAT ANTISEMITISM AFTER TRUMP THREATENS FUNDING
Harvard was the first among its Ivy League peers to raise its maximum income to receive free tuition. Previously, it offered free tuition to students from families who made less than $65,000 — as Yale University and Princeton University do. The change will begin in the 2025-2026 school year. It is estimated that 86% of U.S. families will qualify for free tuition.
Last year, the cost of tuition was just under $60,000 annually.