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Harvard University is set to raise $750 million by issuing taxable bonds as it braces for a possible financial blow from the Trump administration, which is threatening to revoke federal funding over allegations of antisemitism on campus.
The move comes days after President Donald Trump escalated scrutiny of U.S. universities accused of mishandling campus protests related to the Israel-Gaza conflict, signaling a crackdown that could affect billions in government funding. Harvard, among the most high-profile targets, has been warned it could lose up to $9 billion in federal contracts and research grants unless it complies with a list of new federal demands.
“As part of ongoing contingency planning for a range of financial circumstances, Harvard is evaluating resources needed to advance its academic and research priorities,” a university spokesperson said in a statement Monday.
According to bond documents, the debt issuance will be used for “general corporate purposes.” Goldman Sachs is managing the transaction, which will offer taxable bonds—providing Harvard greater flexibility in using the funds compared to traditional tax-exempt debt.
Federal Crackdown Intensifies
The Trump administration last week sent a letter to Harvard outlining a series of conditions the school must meet to retain federal support. These include a ban on protestors wearing masks, among other measures intended to address what the administration claims is growing antisemitism on campus.
Harvard, Columbia, and Princeton universities have come under particular scrutiny, with federal agencies already freezing dozens of research grants at the latter two institutions. Many of these actions are rooted in a wider political clash over pro-Palestinian demonstrations that have swept college campuses across the country since Israel’s military offensive in Gaza began in late 2023.
Financial Safety Net
Despite being the wealthiest university in the United States,with a $53 billion endowment—Harvard relies heavily on federal funding for its extensive research operations. In the last fiscal year, government support accounted for roughly 11% of the university’s operating revenue.
To weather the storm, Harvard is leaning on its strong credit ratings. Moody’s has given the new bond issuance a top-tier Aaa rating, citing the university’s global reputation, strong donor support, and “substantial wealth.”
The school already has a $1.5 billion revolving credit facility, $3 billion in commercial paper capacity, and had over $7.1 billion in debt outstanding at the end of FY2024. This new borrowing could push that figure to $8.2 billion.
“This is a fiscally astute move in light of the uncertainty,” said Lisa Washburn, managing director at Municipal Market Analytics. “Harvard is not alone—we expect more universities to enter the taxable bond market.”
While the administration argues that its actions are necessary to counter antisemitism, critics—including students, faculty, and civil rights groups—claim the policy blurs the line between hate speech and legitimate political dissent.
Many student-led protests, including by Jewish advocacy groups, argue that the Trump administration is conflating criticism of Israel’s military actions with antisemitic rhetoric, thereby suppressing free speech.
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