A Breakdown of Harvard University’s Financial Resources

Harvard University has declared its refusal to comply with the Trump Administration’s requests to change its hiring practices and overall management, potentially jeopardizing for the institution.

This funding cut represents a significant portion of Harvard’s budget. To illustrate, Harvard’s endowment distributed for the fiscal year ending in June 2024, which accounted for of the university’s total operating revenue that year.

Harvard’s defiance marks it as the first educational institution to challenge the Trump Administration, which has been tightening its grip on schools through Executive Orders and the Department of Education.

In a addressed to Harvard University President Alan Garber, officials requested several changes, including the elimination of all diversity, equity, and inclusion programs and offices; “reducing the power held by students and untenured faculty;” and implementing merit-based hiring processes that disregard race, religion, sex, or other identifying factors. They also instructed Harvard to commit to addressing antisemitism on college campuses, following a year of intense urging universities to . Over 50,000 Palestinians have died as a result of the Israel-Hamas War, .

“The university will not compromise its independence or surrender its constitutional rights. Neither Harvard nor any other private university can allow itself to be taken over by the federal government,” attorneys representing the university .

Where does Harvard’s funding come from?

Universities, along with hospitals and nonprofit organizations, depend on endowments—long-term investment funds that generate returns to support these entities. Endowments are created when donors provide a gift intended to be maintained for a specific, long-term purpose. The donation is then invested, and each organization has its own guidelines for managing their endowment to optimize current and future spending needs by determining what percentage of their investment income can be used annually. Harvard’s endowment is made up of .

In addition to its endowment, Harvard supplements its funding through tuition, which is $86,926 for undergraduate students during the 2025-2026 academic year. Education revenue of the total revenue for the university, although many students are exempt from these costs. Approximately 55% of undergraduates receive need-based scholarships. For this academic year, the university that families earning under $100,000 would not be required to contribute financially towards their education.

Alumni donations also contribute to the university’s operating revenue. Philanthropy accounted for 45% of the university’s revenue in fiscal year 2024, including the net endowment distribution and other gifts.

Federal sponsored research constituted 11% of the university’s revenue that year, compared to the 5% received from non-federal organizations. However, government grants are often multi-year funding streams—withdrawing this funding could endanger long-term research projects.

The endowment remains Harvard’s primary source of revenue. Some schools within the university rely more heavily on these funds. For example, for the Radcliffe Institute for Advanced Study comes from the endowment, while only 20% of the funding for Harvard Business School depends on it.

Harvard’s actions contrast with the response of fellow Ivy League institution Columbia University, which announced its compliance with the Trump Administration’s demands, as over $400 million in federal funds to the university remain at risk. The University of Pennsylvania also had suspended due to the participation of a transgender athlete on a women’s swimming team in 2022. This February, President Trump issued an prohibiting transgender athletes from participating in women’s sports.