Overview

• The Trump administration has frozen over $2.2 billion in research grants and threatened an 8% endowment tax that together could cost Harvard $1 billion in annual revenue.
• Harvard’s $53 billion endowment is shielded by donor restrictions on more than 80% of funds, constraining its ability to cover operating deficits.
• The university has won a temporary injunction against the student visa ban, borrowed $750 million and sold $1 billion in private-equity holdings at a 7% discount to bolster reserves.
• President Alan Garber confirmed that behind-the-scenes talks with the administration resumed in mid-June to seek a settlement.
• Analysts warn that if remaining funding cuts and new taxes take effect, Harvard will face steep cuts to programs, staffing and financial aid.