Emboldened by Columbia College’s latest capitulation to a sequence of sweeping government demands, U.S. President Donald Trump is weaponizing huge sums of federal funding in opposition to a rising variety of universities.
As of Friday morning, the Trump administration has now both frozen, canceled, or threatened greater than hundreds of millions of dollars in federal funding to seven rich universities: Columbia, the College of Pennsylvania, Princeton, Harvard, Brown, Cornell, and Northwestern. To justify the strikes, Trump officers have cited the colleges’ insurance policies for transgender athletes and alleged antisemitism and racial discrimination.
Emboldened by Columbia College’s latest capitulation to a sequence of sweeping government demands, U.S. President Donald Trump is weaponizing huge sums of federal funding in opposition to a rising variety of universities.
As of Friday morning, the Trump administration has now both frozen, canceled, or threatened greater than hundreds of millions of dollars in federal funding to seven rich universities: Columbia, the College of Pennsylvania, Princeton, Harvard, Brown, Cornell, and Northwestern. To justify the strikes, Trump officers have cited the colleges’ insurance policies for transgender athletes and alleged antisemitism and racial discrimination.
With Columbia, Trump wielded $400 million in canceled federal funding to stress directors into surrendering to a raft of far-reaching authorities demands, and he’s now reportedly contemplating pushing for federal oversight of the college. Trump now seems to be utilizing that same playbook with the opposite establishments, most just lately by issuing a lengthy checklist of “critical reforms” to Harvard that the college should meet to proceed receiving federal funding.
The strikes quantity to an unmistakable incursion on educational freedom as Trump seeks to expel what he has known as “anti-American insanity” from universities and reclaim “our once-great academic establishments from the novel left.” Extra may quickly come, too. The Trump administration is investigating greater than 50 institutions for alleged racial discrimination—an accusation that largely targets efforts by universities to advertise variety—and beforehand warned 60 universities of potential punishment from antisemitism probes.
But the continuing marketing campaign has sparked confusion about why establishments reminiscent of Columbia—which ranks among the many world’s richest universities—aren’t utilizing their fortunes to combat again. Columbia, for instance, touts an almost $15 billion endowment, property that might theoretically cushion the blow of $400 million in pulled federal funding. Harvard has a whopping endowment of greater than $50 billion.
“Outsiders take a look at the greenback quantities and say, ‘You already know, that’s a ton of cash obtainable, proper? Why don’t they step up?” stated Todd Ely, a professor on the College of Colorado Denver. “However the story will get much more sophisticated while you begin digging into what endowments are.”
Endowments are, on the most elementary degree, swimming pools made up of varied separate funds which are essential to powering universities’ ongoing and future operations—whether or not that’s by supporting monetary assist, research overseas packages, or analysis efforts—and likewise underpin the establishments’ long-term enterprise methods.
It’s “actually this assortment of property the universities and universities make investments, and the thought is that they’ll be producing a long-term stream of income,” Ely stated.
Since many donors have earmarked their contributions for sure functions, there are certainly constraints on endowment spending, consultants stated. Phillip Levine, an economics professor at Wellesley Faculty, stated that donations typically include “strings connected” to them.
“The endowment shouldn’t be a piggy financial institution,” Levine stated.
Nonetheless, there’s some room to maneuver. A lot of the endowments’ restricted funding pertains to operations that universities would spend money on anyway—reminiscent of monetary assist or working libraries—and even then, not the entire universities’ funding is legally sure, stated Morton Schapiro, a former president of each Northwestern College and Williams Faculty. Whereas universities sometimes spend round 5 percent of their endowment per 12 months, they’ve traditionally spent extra in occasions of hardship, reminiscent of in the course of the 2008 financial crisis.
“There’s extra flexibility on spending the endowment than most presidents admit,” Schapiro stated.
But even with that flexibility, by dangling tons of of hundreds of thousands of {dollars} in federal funding over these universities, the Trump administration is forcing directors to confront tough trade-offs that can solely turn out to be extra existential over time.
In an interview with NPR, Christopher Eisgruber—the president of Princeton College and one of the crucial vocal critics of Trump’s crackdown on greater schooling—stated that the college’s $34.1 billion endowment will help it reply to “very short-term suspensions in analysis funding.”
“However for those who get to longer-term deprivation of grants at Princeton or elsewhere, what it’s going to imply is that there are going to should be selections to cease doing issues that we’re doing now,” he added.
The massive query now’s whether or not Trump’s newest targets will observe in Columbia’s footsteps. As Trump units his sights on extra universities, a rising refrain of voices, together with Eisgruber, has urged the rich establishments to combat again.
One such voice is Larry Summers, the previous president of Harvard College in addition to a former secretary of the U.S. Treasury Division, who warned in a New York Times op-ed final week that Trump’s threats “have to be resisted utilizing all obtainable authorized means”—together with the establishments’ endowments.
“A part of their operate is to be drawn down within the face of emergencies, and protecting federal funding lapses certainly counts as one,” he wrote. “Consider me … after I say that methods will be present in an emergency to deploy even elements of the endowment which were earmarked by their donors for different makes use of.”
Trump’s stress marketing campaign is only one a part of his sweeping effort to remake greater schooling within the nation. On high of the president’s funding threats, universities throughout the US have additionally been roiled by the administration’s purge of the National Institutes of Health. Republican lawmakers are additionally mulling further hiking up the tax fee on high college endowments—measures that may solely add stress on many of those establishments’ funds.
All of this turbulence additionally comes because the Trump administration has launched a sweeping crackdown on college students who participated in or are in any means related to pro-Palestinian activism. Trump has sought to deport foreign-born students who’re in the US legally—in lots of circumstances, seemingly over their help for the Palestinian trigger—and his administration has revoked greater than 600 student visas.
“There’s simply these enormous forces which are bearing down on these establishments, all of that are troublesome separately, and collectively, they’re overwhelming,” stated Levine, of Wellesley Faculty.
