Overview

• A Monday letter from President Alan Garber and senior administrators estimates that combined federal actions and the reconciliation bill’s endowment tax increase could total $1 billion in annual losses
• The reconciliation bill raises the federal tax on income from Harvard’s $53 billion endowment from 1.4% to 8%, adding more than $200 million in yearly expenses
• The Trump administration has withheld over $2.6 billion in research grants, threatened Harvard’s tax-exempt status and challenged its ability to host international students
• Harvard will continue a university-wide hiring freeze for faculty and staff and has directed each school and unit to enforce deeper expenditure reductions
• Officials said an updated fiscal 2026 budget plan will be released later this week and highlighted that more than $250 million has been allocated to a research continuity fund