Harvard plans to borrow $750 million after federal funding threats [View all]

Source: Reuters

April 8, 2025 12:53 AM EDT Updated 11 hours ago


WASHINGTON, April 7 (Reuters) - Harvard University plans to borrow $750 million from Wall Street as part of contingency preparations, it said on Monday, days after President Donald Trump's administration announced a review of $9 billion in federal grants and contracts to the Ivy League school in a crackdown on alleged antisemitism on campuses.

In a letter to Harvard last week, the government listed conditions that Harvard must meet to receive federal money, including a ban on protesters wearing masks to hide their identities and other restrictions. Harvard acknowledged receiving the letter but did not comment further. "As part of ongoing contingency planning for a range of financial circumstances, Harvard is evaluating resources needed to advance its academic and research priorities," Harvard University said in Monday's statement.

Harvard's plans come less than a week after Princeton University said in a notice dated April 1 that it was also considering the sale of about $320 million of taxable bonds later this month. Princeton said last week the U.S. government froze several dozen research grants to the school. Harvard intends to issue up to $750 million of taxable bonds for "general corporate purposes," a spokesperson said. The university had $7.1 billion of debt outstanding at the end of fiscal year 2024, and anticipated about $8.2 billion after the proposed bond issuance.

The university most recently issued $434 million in tax-exempt bonds in March 2025 and $735 million in tax-exempt bonds in spring 2024, its spokesperson said, adding it also issued bonds in 2022. Harvard has a $53 billion endowment, the largest of any U.S. university. Advocates, students and several faculty members have called on university leadership to resist the demands from the Trump administration.

Read more: https://www.reuters.com/world/us/harvard-plans-borrow-750-million-after-federal-funding-threats-2025-04-07/