Trump pulls the $2 bn plug: Can Harvard keep the lights on in its labs?
The Trump administration's freeze of over $2 billion in federal funding to Harvard University raises concerns about the future of scientific research. This decision impacts projects related to critical areas like cancer and neurodegenerative disea...
By ET Online | Updated:
As the Trump administration freezes over $2 billion in federal funding to Harvard University, questions arise over why institutions like Harvard receive such support and how they might fill the gap. The freeze comes amid a broader clash between the administration and universities over governance, DEI programs, and academic oversight.
The standoff between President Donald Trump and Harvard University has escalated into a high-stakes battle over control, ideology, and billions in federal funding. The Trump administration has accused the Ivy League institution of resisting oversight and continuing practices it deems problematic, including diversity and inclusion programs and certain hiring and admissions policies.
"Everyone knows that Harvard has “lost its way.” They hired, from New York (Bill D) and Chicago (Lori L), at ridiculously high salaries/fees, two of the WORST and MOST INCOMPETENT mayors in the history of our Country, to “teach” municipal management and government. These two Radical Left fools left behind two cities that will take years to recover from their incompetence and evil. Harvard has been hiring almost all woke, Radical Left, idiots and “birdbrains” who are only capable of teaching FAILURE to students and so-called “future leaders.” Look just to the recent past at their plagiarizing President, who so greatly embarrassed Harvard before the United States States Congress. When it got so bad that they just couldn’t take it anymore, they moved this grossly inept woman into another position, teaching, rather than firing her ON THE SPOT. Since then much else has been found out about her, but she remains in place. Many others, like these Leftist dopes, are teaching at Harvard, and because of that, Harvard can no longer be considered even a decent place of learning, and should not be considered on any list of the World’s Great Universities or Colleges. Harvard is a JOKE, teaches Hate and Stupidity, and should no longer receive Federal Funds. Thank you for your attention to this matter!," Trump said in a post oh his Truth Social.
The decision to freeze more than $2 billion in federal research funds is the most serious financial action yet in a broader campaign targeting universities over alleged antisemitism and left-leaning ideology on campuses. Harvard, a symbol of elite academia, now finds itself at the center of a political and financial confrontation, one that could reshape the relationship between federal power and higher education.
One of the halted programs includes research into ALS (amyotrophic lateral sclerosis), led by David Walt, a professor at Harvard Medical School and Brigham and Women’s Hospital. He told The Post that he was directed to stop all work immediately. “Lots of people are waiting for cures. If you can diagnose people early, intervene earlier, the hope is you can delay or prevent the disease progression,” Walt said.
A university spokesperson told The Washington Post, “As part of ongoing contingency planning for a range of financial circumstances, Harvard is evaluating resources needed to advance its academic and research priorities.”
These disparities highlight why the federal government remains the single most important source of research funding in the US university system — and why the freeze could have lasting effects beyond Harvard.
The standoff between President Donald Trump and Harvard University has escalated into a high-stakes battle over control, ideology, and billions in federal funding. The Trump administration has accused the Ivy League institution of resisting oversight and continuing practices it deems problematic, including diversity and inclusion programs and certain hiring and admissions policies.
"Everyone knows that Harvard has “lost its way.” They hired, from New York (Bill D) and Chicago (Lori L), at ridiculously high salaries/fees, two of the WORST and MOST INCOMPETENT mayors in the history of our Country, to “teach” municipal management and government. These two Radical Left fools left behind two cities that will take years to recover from their incompetence and evil. Harvard has been hiring almost all woke, Radical Left, idiots and “birdbrains” who are only capable of teaching FAILURE to students and so-called “future leaders.” Look just to the recent past at their plagiarizing President, who so greatly embarrassed Harvard before the United States States Congress. When it got so bad that they just couldn’t take it anymore, they moved this grossly inept woman into another position, teaching, rather than firing her ON THE SPOT. Since then much else has been found out about her, but she remains in place. Many others, like these Leftist dopes, are teaching at Harvard, and because of that, Harvard can no longer be considered even a decent place of learning, and should not be considered on any list of the World’s Great Universities or Colleges. Harvard is a JOKE, teaches Hate and Stupidity, and should no longer receive Federal Funds. Thank you for your attention to this matter!," Trump said in a post oh his Truth Social.
The decision to freeze more than $2 billion in federal research funds is the most serious financial action yet in a broader campaign targeting universities over alleged antisemitism and left-leaning ideology on campuses. Harvard, a symbol of elite academia, now finds itself at the center of a political and financial confrontation, one that could reshape the relationship between federal power and higher education.
The origins of federal support for university research
Harvard’s reliance on federal funding stems from a longstanding US policy linking public investment to scientific advancement. This model took shape in July 1945, when Vannevar Bush, then-head of the US Office of Scientific Research and Development, submitted a report to President Harry Truman titled “Science — the Endless Frontier.” In it, Bush argued that federal funds should be directed to research universities to promote innovation, marking a shift from earlier eras when most research was financed by private companies and foundations.ADVERTISEMENT
This philosophy led to the growth of a federally supported research ecosystem across American campuses. Harvard, like many top-tier universities, became a major recipient. According to The Washington Post, in fiscal year 2024, federal funding made up 68 percent of Harvard’s total sponsored research revenue, amounting to $686 million.What federal money pays for at Harvard
The funds at risk support a broad array of scientific research. Projects related to cancer, organ transplants, obesity, and neurodegenerative diseases are directly impacted. The Harvard T.H. Chan School of Public Health noted that about 46 percent of its fiscal 2025 budget depended on federal funds — both for direct research and administrative expenses.One of the halted programs includes research into ALS (amyotrophic lateral sclerosis), led by David Walt, a professor at Harvard Medical School and Brigham and Women’s Hospital. He told The Post that he was directed to stop all work immediately. “Lots of people are waiting for cures. If you can diagnose people early, intervene earlier, the hope is you can delay or prevent the disease progression,” Walt said.
Can Harvard use other funds?
To navigate the funding freeze, Harvard has moved to strengthen its liquidity. According to The Post, the university recently borrowed $750 million through a taxable bond sale, with proceeds marked for general operations.ADVERTISEMENT
Harvard’s endowment — valued at $53.2 billion — is among the largest in the world. While universities do use endowment income to support research, most of that funding is restricted by donor conditions. Endowments are also structured to ensure long-term sustainability rather than short-term cash needs.A university spokesperson told The Washington Post, “As part of ongoing contingency planning for a range of financial circumstances, Harvard is evaluating resources needed to advance its academic and research priorities.”
ADVERTISEMENT
Why private philanthropy isn’t enough
Even with its massive endowment and donor base, Harvard cannot rely solely on private giving to replace federal support. The Post notes that the National Institutes of Health had a budget of nearly $48 billion in 2024, with over 80 percent directed to university researchers nationwide. By comparison, the Howard Hughes Medical Institute and the American Cancer Society contributed around $800 million and $132 million, respectively, to biomedical research in the same year.These disparities highlight why the federal government remains the single most important source of research funding in the US university system — and why the freeze could have lasting effects beyond Harvard.
Harvard University is facing the largest funding threat among the institutions targeted by the Trump administration. Federal funding worth approximately $9 billion is at stake, and more than $2.2 billion has already been withdrawn.
The administration accuses Harvard of allowing antisemitism and promoting ideological bias. In response, Harvard rejected the administration’s proposals, including allowing an external auditor to review departments and reporting conduct violations by international students.
President Alan M. Garber said the university “will not surrender its independence or relinquish its constitutional rights.” Despite holding a $53 billion endowment, Harvard recently announced a $750 million bond issue to ensure financial flexibility amid the uncertainty.
Funding at Stake: About $9 billion
Already Cut: Over $2.2 billion
Trump Demands: External audits, curbs on faculty power, reporting of international student conduct
Also See: 10 red flags Indian students and workers must know before heading to the US
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
ADVERTISEMENT
