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4w ago

Harvard Secures $750 Million Bond to Counter Federal Funding Threats

Facing potential losses of up to $9 billion in federal grants, Harvard turns to Wall Street for liquidity as it navigates strict compliance demands from the Trump administration.

A passerby poses for a photo with a Harvard tour group and the statue of John Harvard in the background on Harvard Yard, on the first day of the fall semester at Harvard University in Cambridge, Massachusetts, U.S., September 3, 2024. REUTERS/Nicholas Pfosi/File Photo
The Hebrew word "chai" (alive) is written with candles, following a vigil held on the steps of the Harry Elkins Widener Memorial Library on the one-year anniversary of Hamas' October 7 attack on Israel, to mourn those killed and to call for the release of hostages in Cambridge, Massachusetts, U.S. October 7, 2024. REUTERS/Nicholas Pfosi/File Photo
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Overview

  • Harvard University is issuing $750 million in taxable bonds, managed by Goldman Sachs, to safeguard its financial stability amidst federal funding uncertainty.
  • The Trump administration has imposed compliance conditions, including restrictions on campus protests, as part of its crackdown on alleged antisemitism at universities.
  • Harvard risks losing up to $9 billion in federal research grants and contracts if it fails to meet the government's demands outlined in a formal letter last week.
  • This bond issuance is part of Harvard's broader financial strategy to maintain liquidity, alongside its $53 billion endowment and other borrowing mechanisms.
  • The federal government has already frozen or canceled funding for other universities, such as Columbia and Princeton, as part of a nationwide review of campus policies and practices.