A few months after the federal power returns to a broad claim white House, President Donald Trump American higher education has been resumed by targeting elite universities with deep funding cuts.
The most dramatic step came last week, when Trump went to cancel $ 2.2 billion (€ 1.9 billion) in Multier Research Grant Harvard. Earlier in April, he funded about $ 1 billion in funding for Cornell and $ 790 million for Northwestern, indicating that no institution is exempted.
Funding freeze is part of a comprehensive campaign to publicly reduce funding and punish American complexes. Trump administration Classes have been accused of failing to handle conceptual prejudice, antisemitism and anti -Palestinian opposition in their premises. Climate has expanded beyond higher education, affecting research in areas such as climate science, vaccine development and gender inequality.
In response, more than 100 universities On April 22, a joint letter issued what he called the “Overch of the unprecedented government”.
The letter stated, “We are open to creative reforms and do not oppose legitimate government inspection. However, we should oppose improper government infiltration. We should reject the tremendous use of public research funding funding,” the letter states.
American elite universities have a unique financial system
Federal funding for elite universities is for great depression in the early 20th century, and was frozen during the Cold War.
In 1958, the Congress passed the National Defense Education Act in response to the launch of the Soviet Union’s Sputnik, the first artificial satellite in the world, which began a major investment in science and technology.
The funding prepared the basis for a long -standing partnership, in which the federal government helped American universities convert to global centers of research, innovation and talent.
According to the National Science Foundation, in 2023, American colleges and universities spent $ 108.8 billion on research and development – of which $ 60 billion, or about 55%, were provided by the federal government.
Harvard sued the Trump administration on funding freeze
Unlike many countries, the United States does not have a national university. American education is primarily the responsibility of states, and the elite institutions rely on a complex web of revenue currents, of which federal funding is just a part.
The financial strength of top American universities lies in their diverse models, especially in their settlement – the huge investment portfolio manufactured through decades of philanthropy and capital growth.
For example, Harvard’s settlement, which reached $ 53.2 billion in 2024, to become the largest of all universities around the world, exceeds GDP (GDP) of countries such as Jordan, Georgia or Iceland.
According to the National Association of College and University Business Officers (NACUBO), universities of Texas, Yale, Stanford, Princeton and MIT have been followed back, with an arrangement of more than $ 23.5 billion.
But these settlement is not a infinite lifeline. Most capital is tied in donor-stake funds, which are legally determined for specific purposes, such as scholarship, professorship or target research initiative. Harvard’s settlement includes over 14,600 individual funds, with almost all donor bound by sanctions, according to university revelations.
Philanthropy, funding campaign and tuition
Philanthropist donation is a fundamental part of the university’s finance, often promotes capital expansion and institutional reputation. However, these gifts often come up with situations. According to NACUBO, about 90% of the universities are specified for settlement fund specific uses, such as scholarships, research or infrastructure.
High-profile money-ravaging campaigns can generate billions, but most donations are determined for long-term projects such as new buildings, faculty faculty posts or educational programs-not for a fall situation or sudden budget deficiency. Unrestricted gifts, which may use universities to cover operating deficit or respond to sudden money deductions, are comparatively rare.
For example, during the Covid-19 epidemic, many institutions faced financial stress despite having significant funds, as most of that capital was closed in long-term projects and could not be accessed independently.
Tuition revenue, meanwhile, includes only part of the operational costs in elite private universities. It is also politically sensitive and limited source of income. This also applies to auxiliary revenue, such as campus housing, dining, technology licensing and executive education, which are usually reinstated in main educational functions rather than alternative expenditure.
How do American universities compare non-American counterparts
Azer American universities operate unmatched by their global peers. According to the University of Oxford, when they combine their 43 colleges and Central University, according to the University of Oxford, about £ 8.3 billion ($ 11.05 billion, € 10 billion, € 10 billion).
The Cambridge University Endowment Fund is about £ 210 million, with the total net assets of the broader, except the assets of individual colleges, £ 2.62 billion.
In most parts of Europe and China, the revenue models overshadow the government subsidy and tuition cap. According to the European Tertiary Education Register, some European institutions have settlement of more than $ 1 billion.
What are the results of research budget cut?
While the top universities in the US have claimed heavy settlement and diverse revenue currents, their ability to lead in global research is deeply connected with public funds. That dependence is now being tested. Harvard Medical School has begun preparations for potential retrenchment, abolished leases at several buildings and suspended some research grants.
NIH, the primary source of the country’s biomedical research funding, faces the proposed 40% budget cut. At Columbia University, the Vagelos College of Physicians and Surgeons responded with immediate spending – an early indication of comprehensive collapse.
Funding squeeze extends far beyond health science. NASA’s $ 7.6 billion science budget can be about half under the current proposals. NASA has confirmed that it is reviewing the budget recommendations submitted by the White House Office of Management and Budget (OMB), which has not publicly commented on the matter.
The effect is not limited to elite schools. Small universities and special scientific operations that mainly rely on federal support, face potential disruptions that can prevent local innovation and weaken regional economies.
The nuclear spectroscopy group at the National Institute of Standards and Technology, a major global reference laboratory used in areas ranging from cosmology to manufacturing, is allegedly scheduled to close.
For many learning and research institutes, the question is no longer affected, but how deep – and how long will the loss.
