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Harvard’s FY2025 Report: Endowment Hits $56.9 Billion, Record Gifts, $113 Million Deficit

University leaders say suspended federal research payments drove the shortfall, leaving finances uncertain under heightened oversight.

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A pedestrian casts a shadow on a Harvard University sign after U.S. President Donald Trump said that his administration was close to a deal with Harvard University, in Cambridge, Massachusetts, U.S., September 30, 2025. REUTERS/Brian Snyder
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Overview

  • Harvard posted an 11.9% investment return as the endowment rose to $56.9 billion, yet the university recorded a $113 million operating loss on $6.7 billion in revenue.
  • Leaders attributed the deficit to the spring suspension of most federal research grants, rising expenses and legal costs, noting the endowment covered about $2.5 billion of operations but remains largely restricted.
  • Current-use donations reached a record $629 million, boosted by a surge of small-dollar gifts, while contributions directly to the endowment declined slightly.
  • To bolster liquidity, Harvard issued about $1.2 billion in new debt, including a $750 million bond, and the Education Department placed the university on heightened cash monitoring requiring a $36 million letter of credit.
  • Many federal research awards were reinstated by a judge in September, a change not reflected in FY2025 results, and a new federal endowment tax rate of up to 8% is set to materially increase future liabilities.