Harvard University finds itself in a contentious standoff with the Trump administration, facing the potential loss of billions in federal funding and even its non-profit tax-exempt status. This escalating conflict stems from the administration’s accusations of increasing left-wing radicalism and discriminatory practices in admissions and hiring at the Ivy League institution.
President Trump has issued a list of demands for Harvard to continue receiving federal funds, including the cessation of diversity, equity, and inclusion (DEI) programs, the adoption of merit-based admissions and hiring processes, and the reporting of international students who violate conduct policies to federal authorities. Harvard has so far refused to comply with these demands.
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In response, the Trump administration has frozen a significant $2.2 billion in multi-year grants and $60 million in multi-year contracts awarded to the university. Furthermore, President Trump has publicly stated he is considering revoking Harvard’s non-profit tax-exempt status if the university persists in promoting what he termed “political, ideological, and terrorist inspired/supporting ‘sickness.’”
A new analysis by Open the Books reveals the significant financial implications of this standoff. Since the first Trump administration, Harvard has received a staggering $4.4 billion in federal funding through grants, contracts, sub-grants, and sub-contracts – an average of approximately $539 million per year. The majority of this funding, $3.6 billion, came in the form of grants.
Interestingly, Open the Books’ analysis indicates that in any given year, Harvard has collected more in federal grants and contracts than it stood to gain through tuition, room, and board charges alone (not accounting for financial aid or loans).
Adding another layer to the financial scrutiny is Harvard’s massive endowment, which has grown by $14 billion since 2018, reaching a total of $53.2 billion in 2024. This means the university holds over $7 million for every undergraduate student, even as it receives billions in federal grants and contracts.
The National Institutes of Health (NIH) has been the largest contributor of federal funds to Harvard, providing $2.6 billion between FY 2017 and 2025. The National Science Foundation ($418 million) and the Department of Defense ($357 million) were the next largest contributors.
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Several specific grants have also drawn attention, including:
- $2,497,617 for improving “diversity in biomedical sciences via personalized research and education programs.”
- $669,028 for a project examining the “Effects of Advance in the STEM Disciplines: Faculty Diversity, Women in Leadership, and Institutional Transformation.”
- $201,124 to study avenues for “societal transformations.”
- $99,216 for “The Amendments Project: Rewriting the U.S. Constitution.”
- $85,000 to support studies on a “digital music-based mindfulness intervention developed for black American adults experiencing race-based anxiety.”
Beyond federal funding, Harvard’s acceptance of foreign funds is also under intense scrutiny. The Trump administration has launched an investigation into the university’s foreign gifts, alleging “incomplete and inaccurate” disclosures. Federal law mandates universities to report foreign payments exceeding $250,000 to the Department of Education.
Since 2017, Harvard has received $1.1 billion in gifts or contracts from foreign sources. The top contributing countries were England ($166.8 million) and China ($101.9 million), with an additional $77.9 million originating from Hong Kong.
Concerns have been raised regarding Harvard’s financial ties with China, particularly in light of intellectual property theft risks. While most foreign funds lack specific descriptions, $34.2 million in contracts, all awarded since 2020, are designated for “designat[ing] a principle investigator,” raising questions about potential research infiltration.
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The case of former Harvard professor and chemist Charles Lieber, convicted in 2021 for making false statements about his involvement with China’s Wuhan University of Technology and the Thousand Talents Program, has amplified these concerns. The FBI has described the Thousand Talents Program as a scheme to incentivize the theft of foreign technologies for China’s benefit.
Further raising eyebrows is the $1.6 million Harvard received from entities within the “Palestinian territories,” with no specified purpose for the funds in federal records. Harvard has declined to comment on these funds, prompting increased scrutiny amid rising concerns about extremist protests on campuses following the October 7, 2023, attack on Israel.
As Harvard faces potential financial constraints, its substantial payroll has also come under the microscope. In 2022, the university paid out nearly $2.9 billion in total compensation, including $18,637,713 for 23 employees earning over $400,000. Then-president Lawrence Bacow received $1,330,200 in the same year.
Claudine Gay, Bacow’s successor who resigned in January 2024 after a controversial congressional testimony on antisemitism and subsequent plagiarism allegations, earned $879,079 as dean of the Faculty of Arts and Sciences in 2022. Despite her resignation, reports suggest she is expected to retain a significant salary approaching $900,000 as a professor.
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Between 2018 and 2022, the compensation for Harvard’s top faculty surged by $3.6 million, outpacing inflation. Had salaries kept pace with inflation, the total payroll for top earners would have been approximately $17.05 million, an increase of just $2 million.
Despite the potential financial challenges, Harvard’s massive endowment, the largest in the Ivy League, provides a significant financial cushion. While university endowments exceeding $500,000 per student have been subject to a 1.4 percent tax on investment income since 2017, Harvard’s substantial per-student holdings suggest a considerable financial capacity.
Open the Books concludes that with its significant endowment growth and substantial per-student resources, Harvard’s current financial concerns might be overstated. The report suggests that “commonsense adjustments” could potentially diffuse the standoff with the Trump administration.
One such adjustment could involve aligning with the spirit of the bipartisan DETERRENT Act, which passed the House in March. This act lowers the threshold for reporting foreign gifts to $50,000 for most countries and mandates the reporting of every dime from “countries of concern” like China. It also requires universities to obtain annual approval from the Secretary of Education for collaborations with these nations. Non-compliant institutions risk fines and the loss of Title IV federal student aid.
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Furthermore, Open the Books suggests that greater transparency regarding the use of funds from entities in the Palestinian territories could address the administration’s concerns about antisemitism on campus.
The report also highlights the significant federal funding allocated to research seemingly focused on promoting DEI initiatives, suggesting that a shift away from such programs could alleviate some of the administration’s concerns regarding discriminatory practices.
As Harvard and the Trump administration brace for what has been described as a “titanic clash” potentially headed for the Supreme Court, the future of federal funding and the university’s financial landscape remain uncertain.
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