Elite US unis. face Trump pressure with sweeping financial measures
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Harvard, Princeton, and Yale respond to Trump’s pressure with major bond issuances as federal funding threats and antisemitism allegations fuel financial uncertainty.
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Demonstrators with signs stand around the John Harvard Statue in Harvard Yard after a rally was held against President Donald Trump’s attacks on Harvard University at Harvard University in Cambridge, Massachusetts, on April 17, 2025 (AFP)
Elite universities in the United States, most notably Harvard, Princeton, and Yale, are facing escalating pressure from the administration of President Donald Trump, prompting them to adopt significant financial measures, The Wall Street Journal reported.
Their actions come in response to federal threats over antisemitism allegations on campus and broader scrutiny of their policies.
Harvard, Princeton turn to bond markets amid funding threats
The report mentioned that Harvard University announced plans to borrow $750 million through the bond market following threats from the Trump administration to review and potentially withhold up to $9 billion in federal funding.
Similarly, Princeton University issued $320 million in bonds, and Northwestern University raised $500 million. Yale University, which has largely remained silent in response to Trump's pressure on elite universities, is reportedly attempting to sell billions in private equity investments to secure alternative funding sources, the WSJ noted.
The newspaper highlighted that these financial decisions represent the most significant moves since the 2008 global financial crisis and the COVID-19 pandemic, underscoring the scale of challenges now facing US higher education institutions.
Last week, Trump threatened to revoke Harvard’s tax-exempt status and restrict its ability to enroll international students, citing the university's refusal to implement sweeping cultural reforms demanded by the administration.
In response, Harvard filed a lawsuit against the Trump administration, asserting that the government had violated the university’s constitutional rights by endangering its academic independence.
University leaders anticipate that Congress may soon consider increasing taxes on the largest endowments, with proposals already under discussion in the House of Representatives to broaden the scope of affected institutions, WSJ mentioned.
The report said that the pressure from the administration has led elite universities to reevaluate their financial strategies. Princeton, like Harvard and others, issued taxable bonds, which bear higher interest rates but provide flexibility in covering budget shortfalls.
Research grant suspensions, future tax challenges
Princeton’s bond filings revealed that federal agencies, including the Department of Defense, the Department of Energy, and NASA, have suspended dozens of research grants, according to the report.
New Jersey University reported being among 60 institutions that received a letter on March 10 from the Department of Education, which warned that failure to protect against antisemitism could result in funding cuts and that any actions deemed as “unlawful racial discrimination” could bring further financial consequences.
Read more: Obama backs Harvard as Yale faculty support standing up to Trump
