Trump Looks to Cut Another $1 Billion in Funding From Harvard University as School Builds War Chest

The Trump administration may confiscate another $1 billion in federal funds previously appropriated to Harvard University over its allegedly breaching the confidentiality of negotiations on quelling campus antisemitism and reducing the institution’s left-wing bias, the Wall Street Journal reported on Sunday.

The move would intensify what has become a fight over the future of elite higher education, against which conservatives have lodged a slew of criticisms for decades. Their moment to take action has now arrived with the second term of US President Donald Trump, which coincides with a precipitous drop in public support for academia caused by an explosion of pro-Hamas demonstrations on campuses and the promotion of views which many Americans perceive as anti-meritocratic, anti-Western, and racist.

Earlier this month, the administration impounded $2.26 billion in Harvard’s federal funds over the institution’s refusal to agree to a wishlist of policy reforms that Republican lawmakers have long argued will make higher education more meritocratic and less welcoming to anti-Zionists and far-left extremists. Contained in a letter the administration sent to Harvard interim president Alan Garber — who subsequently released it to the public — the policies called for “viewpoint diversity in hiring and admissions,” the “discontinuation of [diversity, equity, and inclusion, or DEI, initiatives],” and “reducing forms of governance bloat.” They also implore Harvard to begin “reforming programs with egregious records of antisemitism” and to recalibrate its approach to “student discipline.”

More cuts may be forthcoming, the Journal reported, due to the Trump administration’s fury over Garber’s decision to publicize the letter, which was intended to be a private discussion between it and Harvard. Administration officials were reportedly planning to treat the university “more leniently” than other schools from which it has already confiscated billions before the policy list was released.

Harvard, however, has denied that it ever agreed to keep its correspondence with the multi-agency Task Force to Combat Anti-Semitism confidential. Meanwhile, the Trump administration believes “the school aimed to fight the entire time” and that it must now respond with more punitive measures to demonstrate its resolve to see a conflict with Harvard through to the end.

The administration is already taking action against the school in other ways. On Friday, the Department of Education announced that it is investigating Harvard’s foreign contributors, citing as cause the university’s alleged numerous failures to provide annual disclosures of gifts exceeding $250,000 as is required by the Higher Education Act of 1965.

“As a recipient of federal funding, Harvard University must be transparent about its relations with foreign sources and governments. Unfortunately, our review indicated that Harvard has not been fully transparent or complete in its disclosures, which is both unacceptable and unlawful,” US Secretary of Education Linda McMahon said in a statement. “This records request is the Trump administration’s first step to ensure that Harvard is not being manipulated by, or doing the bidding of, foreign entities, which includes actors who are hostile to the interests of the United States and American studies.”

She added, “We hope Harvard will respect its own motto and be truthful in its federal filings and foreign relationships.”

Harvard University has been cheered by progressives and criticized by conservatives over its refusal to enact the reforms proposed by the Trump administration.

Former US President Barack Obama lauded Garber for “rejecting an unlawful and ham-handed attempt to stifle academic freedom,” and former Harvard president Larry Summers, speaking to The Harvard Crimson, said that the school should spend down its $53.2 billion endowment fund to offset the federal government’s cuts.

Others, however, such as pro-Israel activist Shabbos Kestenbaum, expressed more opprobrious views of Harvard, accusing it of “fighting Trump harder than it ever fought antisemitism.” Christopher Rufo, a conservative author and resident scholar of the Manhattan Institute, said Trump “has every right to withhold funding” due to the university’s embrace of the DEI movement and holding of segregated graduation ceremonies.

Harvard’s so-called “resistance” is backed by its immense wealth, and the school has been drawing on its vast financial resources to build a war chest for withstanding Trump’s budget cuts since March, when it issued over $450 million in bonds as “part of ongoing contingency planning for a range of financial circumstances.” Another $750 million in bonds was offered to investors in April, according to The Harvard Crimson, a sale that is being managed by Goldman Sachs and Morgan Stanley.

A generous subsidy protects Harvard from paying exorbitant interest on the new debt, as investors can sell most bonds issued by educational institutions without being required to pay federal income tax. Other universities have resorted to borrowing as well, issuing what was reportedly a record $12.4 billion municipal bonds, some of which are taxable, during the first quarter of 2025. Among those which chose to take on debt are Northwestern University, which was defunded to the tune of $790 million on April 8. It issued $500 million in bonds in March. Princeton University, recently dispossessed of $210 in federal grants, is preparing an offering of $320 million, according to Forbes.

The strategy cannot be maintained indefinitely, Middle East expert and president of Scholars for Peace in the Middle East Asaf Romirowsky told The Algemeiner on Monday, noting that Harvard’s first bond offering fell short of its target by $15 million. He said that it is best, and cheaper, for Harvard, as well as other Ivy League institutions, to address the campus antisemitism crisis and “wokeness” on terms to which they and Trump can agree.

“Harvard and other elite colleges seem to feel that Trump is out to hurt them, but the fact of the matter is that they have refused to be introspective in assessing the quality of the product they produce,” Romirowsky explained. “It behooves everybody to find some kind of middle of the road if we are going to change and reform the institutions and give them time to clean themselves up.”

He continued, “Will Harvard survive? Of course, but it needs to reckon with the quality and caliber of its students and faculty, who are so ideologically disconnected from reality.”

Follow Dion J. Pierre @DionJPierre.

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