Harvard University leaders say federal moves under President Trump could slash up to $1 billion per year from the school’s budget. The loss stems from research funding freezes, a hefty endowment tax hike, and restrictions on international students.
Harvard President Alan Garber and senior officials sent a letter warning that next year’s fiscal plan will need severe cuts to offset lost revenue. The university’s $53 billion endowment—once contributing 40 percent of its $6.5 billion annual operating budget—faces an endowment income excise tax hike from 1.4 percent to 8 percent, costing an estimated $200 million annually.
Federal funding cuts compound the issue. The Trump administration has frozen or terminated federal research funds totaling more than $2.6 billion—an escalation of prior actions, including a 2025 freeze of $2.3 billion and an additional $450 million removed in May.
DHS has also threatened to strip Harvard of certification to host international students, jeopardizing tuition revenue tied to its global enrollment.
In response, Harvard has enacted a broad hiring freeze and expenditure cuts, including layoffs at its Kennedy School, Public Health, and Medical School. A $250 million internal “bridge” fund has been tapped, but administrators warn deeper structural changes are required.
The federal pressure campaign is rooted in allegations that Harvard has tolerated antisemitic harassment and that its DEI policies violate federal law. The White House and related agencies have also threatened the university’s accreditation and tax-exempt status unless reforms are made.
Harvard has filed federal lawsuits challenging the funding freezes and student visa restrictions, framing the sanctions as unconstitutional infringement on academic freedom.
