Harvard University begs Wall Street for bailouts after losing billions in funding by refusing Trump's demands
In defiance of the Trump administration, Harvard University is pushing back against the Education Department's freeze of more than $2 billion in funding by turning to Wall Street to fill the gap.
The Ivy League university announced via a letter to the White House on Monday that it won't comply with the requests from Donald Trump's administration as part of its campaign against anti-Semitism.
Just hours later, the administration put the hammer down, freezing $2.26 billion in multi-year grants and $60 million in multi-year contract value to the institution.
However, turning to Wall Street, Harvard has already issued $750 million in taxable bonds, a move aimed at cushioning the blow of potential federal funding cuts, The Wall Street Journal reported.
'The University will not surrender its independence or relinquish its constitutional rights,' Harvard President Alan Garber wrote in a letter to the community on Monday.
'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.'
President Trump has since responded to Harvard in a post shared to Truth Social, claiming the Ivy League is 'supporting sickness'.
'Perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it keeps pushing political, ideological, and terrorist inspired/supporting “Sickness?” Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!' he wrote.
Harvard has turned to Wall Street for money after the education department froze more than $2 billion in funding as part of the Trump administration's campaign against antisemitism on campuses
Earlier this month, the Trump administration task force on antisemitism sent a letter to the prestigious school, demanding it comply with nine specific measures in order to continue receiving nearly $9 billion in grants and contracts, including discontinuation of DEI programs and external monitoring of antisemitism
Harvard has issued $750 million in taxable bonds, a move aimed at cushioning the blow of potential federal funding cuts should negotiations with the task force fail
Earlier this month, the Trump administration task force on antisemitism sent a letter to the prestigious school, demanding it comply with nine specific measures in order to continue receiving nearly $9 billion in grants and contracts.
'The United States has invested in Harvard University's operations because of the value to the school of scholarly discovery and academic excellence,' the administration wrote in the letter.
'But an investment is not an entitlement.'
Some of the listed demands included: merit-based hiring and admissions, discontinuation of DEI programs, external monitoring of antisemitism and whistleblower safeguards.
Additionally, the orders called for a ban on face masks, which appeared to target pro-Palestinian protesters.
The government also pushed for interference inside the classroom, calling for 'necessary changes' to be made to 'address bias, improve viewpoint diversity and end ideological capture' - factors the task force claimed contributes to anti-Semitic harassment.
While recognizing that some of the demands are intended to combat anti-Semitism on campus, President Garber asserted that the majority represents direct governmental regulation of the institution's intellectual environment.
Garber responded to the administration on Monday, ultimately announcing that Harvard would not be complying with the government's proposed agreement.
Harvard President Alan Garber (pictured) announced on Monday that Harvard would not be complying with the government's proposed agreement through a response letter to the community, claiming that the demands violate the university's First Amendment rights
While recognizing that some of the demands are intended to combat antisemitism on campus, President Garber asserted that the majority represents direct governmental regulation of the institution's intellectual environment (pictured: part of the letter written to Harvard demanding change on campus antisemitism)
Massachusetts Governor Maura Healey applauded the university for 'standing against the Trump Administration's brazen attempt to bully schools and weaponize the US Department of Justice under the false pretext of civil rights' (pictured: a student protester stands in front of the statue of John Harvard, the first major benefactor of Harvard College, draped in the Palestinian flag)
In the letter, Garber said the demands violated the university's First Amendment rights and 'exceeds the statutory limits of the government's authority under Title VI,' which prohibits discrimination against students based on their race, color or national origin.
'These ends will not be achieved by assertions of power, unmoored from the law, to control teaching and learning at Harvard and to dictate how we operate,' he wrote.
'The work of addressing our shortcomings, fulfilling our commitments, and embodying our values is ours to define and undertake as a community.'
The Department of Education's Joint Task Force to Combat Anti-Semitism swiftly moved to freeze billions in federal funding to the university, signaling a sharp escalation in enforcement.
The frozen funds have been used by the school for three-quarters of a century to allow 'ground-breaking' research in the engineering, medical and scientific fields.
'These innovations have made countless people in our country and throughout the world healthier and safer,' the letter said.
'New frontiers beckon us with the prospect of life-changing advances - from treatments for diseases such as Alzheimer’s, Parkinson’s, and diabetes, to breakthroughs in artificial intelligence, quantum science and engineering, and numerous other areas of possibility,' it continued.
'For the government to retreat from these partnerships now risks not only the health and well-being of millions of individuals but also the economic security and vitality of our nation.'
Garber responded with a letter (pictured) detailing ongoing efforts on campus to address anti-Semitism, including the implementation of new disciplinary measures for policy violations, the launch of programs aimed at combating bias and the enhancement of safety and security measures
The frozen funds have been used by Harvard for three-quarters of a century to allow 'ground-breaking' research in the engineering, medical and scientific fields
Trump's demands sparked a protest over the weekend from members of the Harvard community and from residents of Cambridge, along with a lawsuit from the American Association of University Professors on Friday challenging the cuts (pictured: letter from lawyers)
Massachusetts Governor Maura Healey applauded the university for 'standing against the Trump Administration's brazen attempt to bully schools and weaponize the US Department of Justice under the false pretext of civil rights', according to The Harvard Crimson.
However, the DOE responded to Garber's refusal and accused the institution of having a 'troubling entitlement mindset', claiming they failed to 'live up to intellectual and civil rights conditions'.
The Trump administration demands prompted a group of alumni to write to university leaders calling for it to 'legally contest and refuse to comply with unlawful demands that threaten academic freedom and university self-governance'.
It also sparked a protest over the weekend from members of the Harvard community and from residents of Cambridge, along with a lawsuit from the American Association of University Professors on Friday challenging the cuts.
In their lawsuit, plaintiffs argue that the Trump administration failed to follow steps required under Title VI before it began cutting funds - giving notice of the cuts to both the university and Congress.
According to the lawsuit, the federal government’s actions 'overtly seek to impose on Harvard University political views and policy preferences advanced by the Trump administration and commit the University to punishing disfavored speech', WSJ reported.
The position stands in stark contrast to their Ivy League siblings at Columbia, who caved to Trump's requests weeks ago.
Harvard is just one of several Ivy League schools targeted in a pressure campaign by the administration, which also has paused federal funding for the University of Pennsylvania, Brown, and Princeton to force compliance with its agenda.
The DOE responded to Garber's refusal and accused the institution of having a 'troubling entitlement mindset', claiming they failed to 'live up to intellectual and civil rights conditions'
A recent lawsuit has argued that the Trump administration failed to follow steps required under Title VI before it began cutting funds - giving notice of the cuts to both the university and Congress
Harvard is now seeking Wall Street's help in funding, claiming that 'for the government to retreat from these partnerships now risks not only the health and well-being of millions of individuals but also the economic security and vitality of our nation'
The Ivy League college initially came under great scrutiny over their response to Israel's war on Gaza that has left more than 50,000 Palestinians dead, according to Gaza's health ministry, and led to genocide and war crimes - allegations Israel denies.
Accusations of campus antisemitism forced the then-president Claudine Gay to resign amid mounting pressure from forces outside the university.
Recently, the administration argued that universities - including Harvard - allowed what is considered to be antisemitism go unchecked at campus protests last year, though the schools deny it.
In Harvard's letter to the task force on Monday, their lawyers claimed the university has made 'significant strides over the past 15 months' to address these issues.
'Harvard is committed to fighting antisemitism and other forms of bigotry in its community,' the letter read. 'Antisemitism and discrimination of any kind not only are abhorrent and antithetical to Harvard’s values but also threaten its academic mission.'
The letter detailed ongoing efforts on campus, including the implementation of new disciplinary measures for policy violations, the launch of programs aimed at combating bias, the enhancement of safety and security measures and the promotion of civil discourse, ideological diversity, and respectful dialogue.
'As a result, Harvard is in a very different place today from where it was a year ago,' the letter read.
'These efforts, and additional measures the university will be taking against antisemitism, not only are the right thing to do but also are critical to strengthening Harvard’s community as a place in which everyone can thrive,' it added.
'Antisemitism and discrimination of any kind not only are abhorrent and antithetical to Harvard’s values but also threaten its academic mission.'
Historians have described the administration's orders as an unprecedented intrusion on university rights long treated by the Supreme Court as an extension of the First Amendment.
