Harvard is not only the most prestigious university in the world, it’s also the wealthiest. With an endowment of $53 billion—a figure greater than the GDP of countries like Iceland or Bolivia—it has enough resources to fund its operations and withstand pressures that would weaken other institutions.
This week, however, its financial strength was put to the test: President Donald Trump announced the freezing of $2.2 billion in federal funding, accusing Harvard of failing to meet certain requirements regarding how it operates, hires, and teaches. On his Truth Social network, Trump went as far as to state:
“Maybe Harvard should lose its tax exemption and be taxed like a political entity if it keeps promoting its terrorism-inspired ideological ‘madness.’”
Later, White House Press Secretary Karoline Leavitt escalated the pressure, declaring:
“Harvard must apologize for the blatant antisemitism on its campus.”
At the end of March, the U.S. government had already warned of the possible withdrawal of up to $9 billion in federal grants following a “thorough review,” accusing the university of tolerating rising antisemitism on campus.
Unlike Columbia University in New York, Harvard has chosen to resist pressure from the Trump administration. Located in Cambridge, near Boston, the university has been the site of multiple student protests against the war in Gaza. Trump accuses Ivy League universities of allowing “hostile” demonstrations toward Israel following the October 7, 2023 attacks, which he labels as antisemitic propaganda.
In a letter addressed to students and faculty, Harvard’s interim president Alan Garber affirmed that the university would not abandon its independence or its constitutionally protected rights:
“No government, regardless of which party is in power, should dictate what private universities must teach, who they should admit or hire, or what areas they may research.”
Shortly after, the U.S. government responded by freezing $2.2 billion in federal subsidies.
Although these subsidies represent about 11% of Harvard’s $6.4 billion annual budget, its vast wealth allows it to maintain a degree of financial independence. As Romain Huret, U.S. historian and president of the École des Hautes Études en Sciences Sociales (EHESS), explains:
“It’s the richest university in the world, so it has no trouble standing up to Donald Trump.”
In addition to federal funding, Harvard relies on two major sources of income: tuition fees ($59,000 per year) and private donations from foundations, corporations, and alumni. However, the threat doesn’t end there. Trump has also suggested eliminating the tax benefits granted to donors, a proposal that deeply concerns academic institutions.
Another looming risk is the potential withdrawal of donor support, particularly from those who believe the university has become too “woke.” Trump has intensified his attacks on universities, accusing them of promoting a progressive agenda and warning that he will cut their public funding if they censor conservative voices or tolerate anti-Israel protests.
