Despite a barrage of federal funding cuts from the Trump administration, Harvard University’s endowment surged to nearly $57 billion in the fiscal year ending June 2025—its largest ever. Yet behind the record-breaking wealth lies a stark financial paradox: the nation’s richest university just posted its first operating deficit since the pandemic.
Harvard’s Endowment Grows Amid Political Turmoil
According to Harvard’s latest financial report, released October 16, the university’s endowment grew by $3.7 billion over the past year, bringing its total assets to $69 billion. The school also received a record $629 million in unrestricted “current use” donations—funds it can deploy immediately for operations, research, or emergency needs.
But these wins were overshadowed by a sudden $116 million loss in federal research grants after the Trump administration froze funding in spring 2025, citing unspecified compliance concerns. The move triggered an operating loss of $113 million—the first red ink on Harvard’s books since 2020.
How Trump’s Actions Impacted Harvard’s Bottom Line
Before the freeze, Harvard was on track for a 9% year-over-year increase in federal research support. Instead, it saw an 8% drop—the equivalent of losing nearly 200 active research projects overnight.
“Without naming Mr. Trump,” Harvard President Alan M. Garber wrote in the report, “the university will continue to adapt to uncertainty and threats to sources of revenue that have sustained our work for many years.”
A Temporary Reprieve—But Challenges Remain
In September, a federal judge ordered the government to restore Harvard’s research funding, calling the freeze “arbitrary and capricious.” Most grants have since resumed, and the university expects to reflect that recovery in its next fiscal year.
Still, Harvard isn’t out of the woods. The Trump administration has appealed the ruling and continues to pressure elite universities over their endowments, arguing they should use their “war chests” instead of relying on federal dollars. But as Harvard officials point out, most endowment funds are restricted by donors for specific purposes—like scholarships or professorships—not general operations.
By the Numbers: Harvard’s Financial Snapshot (FY 2025)
| Metric | Amount | Change vs. Prior Year |
|---|---|---|
| Endowment Value | $57 billion | +7% |
| Operating Revenue | $6.7 billion | +3% |
| Operating Loss | $113 million | First deficit since 2020 |
| Federal Research Grants Lost | $116 million | — |
| Current Use Gifts | $629 million | +19% |
What’s Next for Harvard?
University leaders warn that “structural changes and reductions across our schools and units will be necessary”—including continued hiring freezes, staff layoffs, and possible program consolidations. Harvard also issued over $1 billion in long-term debt to shore up liquidity.
Meanwhile, settlement talks with the Trump administration are ongoing. Reports suggest Harvard may agree to spend $500 million on initiatives aligned with federal priorities to resolve the dispute. But tensions remain high: in September, the Department of Education even questioned Harvard’s “financial responsibility” and demanded $36 million in guarantees.
For now, Harvard’s endowment remains a fortress—but even fortresses can feel the tremors of political warfare.
Sources
Harvard’s Wealth Is Growing, Despite Trump’s Attacks on Its Funds, The New York Times, October 16, 2025.
