Harvard University to borrow $750 million amid threats to federal funding

Harvard University announced plans to borrow up to $750 million through taxable bonds as part of its contingency planning after the federal government said it was reviewing around $9 billion in grants and contracts awarded to it, following allegations of antisemitism on campus.

In a statement issued Saturday, Harvard said, “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 clarified that the funds would be used for “general corporate purposes,” reported Straits Times.

The announcement follows a similar move by Princeton University, which last week said it was considering selling around $320 million in taxable bonds. Princeton has also seen dozens of its federal research grants frozen by the government.

Federal agencies, including the departments of education and health and human services, are examining $255.6 million in existing contracts and $8.7 billion in future grants tied to Harvard and its affiliates. Secretary of education Linda McMahon said the university must address concerns about antisemitic discrimination on campus, or risk further reputational and financial damage.

University president Alan Garber warned freezing or cancelling funding would seriously affect life-saving research and scientific innovation.

Harvard, which currently has $7.1 billion in debt, expects that amount to rise to $8.2 billion after the bond issuance. The university’s endowment stands at $53 billion—the largest of any US university.

Meanwhile, student visas for three of the university's students and two recent graduates were also revoked. The university said it has referred the cases to its legal counsel. The reason for the action is not known.

"We are not aware of the details of the revocations or the reasons for them, but we understand that comparable numbers of students and scholars in institutions across the country have experienced similar status changes in roughly the same timeframe," Harvard said.