Harvard University could face financial losses of up to $1 billion per year if President Donald Trump follows through on proposed cuts to research funding, changes to tax policy, and restrictions on international student enrollment, according to a new report by The Wall Street Journal.
The analysis outlines a worst-case scenario in which the university suffers a $240 million hit to its endowment, $700 million in lost research funding, and $110 million in reduced tuition revenue from graduate and college students — much of it tied to international enrollment.
Despite Harvard’s massive $53 billion endowment, the report notes that most of the funds are restricted for specific uses like medical research, scholarships, or long-term investments — limiting the school’s ability to freely reallocate resources.
Major Federal Pullback
Tensions between Harvard and the Trump administration have escalated in recent months, especially following pro-Palestinian protests on campus over Israel’s military actions in Gaza. The White House has accused the university of tolerating antisemitic speech and violating federal civil rights laws.
White House Press Secretary Karoline Leavitt said,
“If any organization breaks civil rights laws, they should not be receiving federal funding — whether that’s research grants or education support.”
In a significant move, the U.S. General Services Administration has advised all federal agencies to reconsider contracts with Harvard and seek alternative institutions.
Additionally, the administration has taken the unprecedented step of removing Harvard from the government’s electronic student immigration system (SEVIS) — a database used to monitor international students. This action effectively blocks the university from legally enrolling foreign students, who currently make up more than 7,000 of Harvard’s tuition-paying student body.
Fallout Already Underway
Some fallout is already visible. The Harvard Kennedy School has begun laying off staff and downsizing departments. The university has also sold $1 billion in private equity investments at a 7% discount, suggesting an urgent need for liquidity.
According to Katharine Meyer, a fellow in education policy at the Brookings Institution, the cumulative losses could be devastating:
“A single $100 million loss might not sink Harvard, but repeated losses of that scale will stretch even its vast resources.”
Since April, the Trump administration has already slashed over $2 billion in research and education grants nationwide. If such cuts continue, Harvard may be forced to reduce scholarships, eliminate programs, or lay off faculty.
Political Pressure Continues
The pressure campaign comes amid broader Republican efforts to hold universities accountable for perceived bias, particularly on issues related to Israel, free speech, and diversity.
With Harvard now at the center of the storm, the outcome of this political and financial standoff could set a precedent for how far the federal government can go in leveraging funding to influence campus policy.
