Apr 16, 2025
The federal government has already frozen $400 million in funding to Columbia University as part of a campaign targeting elite academic institutions. Now, the Trump administration is setting its sights on Harvard.
After the university recently rejected a series of demands from the Trump administration — arguing they would effectively hand control of the school over to a conservative government — federal officials announced they were freezing $2.3 billion in funding to Harvard.
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Shortly after the frozen funds were announced, Trump doubled down on his threats, stating that he's considering revoking Harvard's tax-exempt status. On April 21, Harvard filed a lawsuit against the Trump administration as the school ramps up its fight over frozen funding, institutional oversight and basic independence.
The lawsuit comes as the Trump administration continues to scrutinize Harvard’s $9 billion in federal contracts and grants, part of the administration’s broader campaign to address the antisemitism that it believes was prevalent on college campuses during pro-Palestinian protests over the past 18 months.
In a joint statement, the Departments of Education, Health and Human Services and the U.S. General Services Administration said they are reviewing $255.6 million in contracts between the federal government, Harvard and its affiliates — along with $8.7 billion in long-term grant commitments.
"If this funding is stopped, it will halt life-saving research and imperil important scientific research and innovation," said Alan Garber, President of Harvard University, in a written statement.
As the federal crackdown intensifies, it could fundamentally alter the way universities function — affecting how research funding is distributed and creating new barriers for students pursuing higher education.
What’s really going on?
On April 3, the U.S. Department of Education placed Harvard University under administrative review, signaling heightened federal scrutiny over the institution’s core operations.
The review includes several preconditions the Trump administration believes are “necessary for Harvard University’s continued financial relationship with the United States government.” These demands include oversight of hiring practices, admissions, student discipline, governance and academic leadership.
In response, a number of Harvard faculty members expressed concern over the administration’s move, framing it as a challenge to institutional autonomy.
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Some argue that Harvard, with its $53.2 billion endowment — the largest of any university in the world — is financially well-positioned to withstand potential federal funding cuts. Approximately 20% of the endowment is unrestricted, giving the university discretion over nearly $10 billion in funds.
In a recent statement, Garber emphasized the university’s commitment to its mission and academic freedom, stating, “We resolve to take the measures that will move Harvard and its vital mission forward while protecting our community and its academic freedom.”
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What does this mean for students?
Dr. Ezekiel Emanuel, Vice Provost for Global Initiatives at the University of Pennsylvania, emphasizes that these cuts could hinder scientific research and local economies. He notes that major advancements since 2000, such as mRNA vaccines and GLP-1 anti-obesity drugs, originated from university labs. Reduced funding may limit students' opportunities to engage in this sort of groundbreaking research.
The consequences are also being felt by international students. Deportation proceedings have begun for some international students who were detained after participating in pro-Palestinian demonstrations. Additionally, visas for several hundred foreign students have been canceled, a development that may affect future enrollment figures.
In a public letter, Garber argued the Trump administration’s demands extend well beyond combating antisemitism, calling them an attempt to regulate the “intellectual conditions” of higher education.
“No government — regardless of which party is in power — should dictate what private universities can teach, whom they can admit and hire, and which areas of study and inquiry they can pursue,” Garber wrote.
For students, the financial toll may prove to be the most immediate concern. With reduced federal support, students could face greater reliance on private loans to meet rising tuition costs — widening the access gap and placing higher education further out of reach for low-income students.
Uncertainty about the future of funding has led some universities to accept fewer graduate students, narrowing many pathways to advanced degrees and research opportunities. Many graduate students depend on federal research grants for scholarships and stipends, and funding cuts can directly impact their academic and professional trajectories.
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Victoria Vesovski is a Toronto-based staff reporter at Moneywise covering personal finance, lifestyle and trending news. She holds degrees from the University of Toronto and New York University, and her work has appeared on platforms including Yahoo Finance, MSN Money and Apple News.
