Everyone talks about Harvard’s huge endowment, but this would definitely hurt them.
The Harvard Crimson reports:
Harvard Officials Say Federal Actions Could Cost the University $1 Billion AnnuallyHarvard President Alan M. Garber ’76 warned Monday that the combined financial impact of sweeping federal policy changes — including research funding cuts, threats to international students, and a sharp increase in the tax on endowment income — could cost the University up to $1 billion annually.In a letter to University affiliates, Garber and other senior administrators warned that next year’s budgets will extend and deepen cuts to cope with mounting pressure from the Trump administration’s now months-long campaign, including the termination of more than $2 billion in research funding.“The unprecedented challenges we face have led to disruptive changes, painful layoffs, and ongoing uncertainty about the future,” the letter read.Garber announced in the letter that Harvard will extend its hiring freeze for faculty and staff — first issued in March — with exceptions only for roles deemed essential to the fulfillment of grant- or gift-funded projects. Administrators have also instructed each school and unit to continue reducing expenditures, streamlining administrative functions, and making “strategic, structural, and sustainable” changes to increase financial flexibility, according to the letter.The updated budget plans for fiscal year 2026 are expected to be released this week and come in the wake of layoffs at the Harvard Kennedy School, the School of Public Health, and the Medical School, where deans have cited mounting financial strain tied to federal actions.The letter was co-signed by Harvard Provost John F. Manning ’82, Executive Vice President Meredith L. Weenick ’90, and Chief Financial Officer Ritu Kalra.In the letter, the officials emphasized that while the University allocated $250 million in bridge funding in May to sustain research through fiscal years 2025 and 2026, additional actions will be necessary to address what they described as “long-lasting declines” in core revenue streams and rising research and teaching costs.
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