Elite universities raise billions amid Trump administration funding threat

Top US universities are rushing to raise cash amid mounting pressure from the Trump administration.

Princeton issued $320 million in bonds, following Harvard’s $750 million and Northwestern’s $500 million. Yale, not yet directly targeted, is looking to sell $5.5 billion in private equity holdings. 

While this would mark Yale’s first known sale in the secondaries market—which allows investors to buy existing assets from other investors rather than directly purchasing stakes from private companies—the endowment remains committed to private equity that currently makes up about 95% of its portfolio.

These moves mirror crisis-era actions as colleges brace for funding cuts.

The Trump administration has pulled, paused, or reviewed over $10 billion in federal support, citing efforts to protect Jewish students and crackdown on diversity, equity and inclusion (DEI) programs.

Harvard sued the administration this week, claiming its academic freedom was threatened after Trump questioned its tax-exempt status and ability to host international students.

Universities say they face greater uncertainty now than during the 2008 crisis or pandemic. Federal agencies have suspended dozens of research grants at Princeton and others. Schools are issuing taxable bonds to stay liquid, though these come with higher interest costs.

Meanwhile, Congress is weighing tax hikes on wealthy endowments. With federal funding at risk, elite schools are rethinking portfolios, trimming budgets, and offloading private equity to prepare for what some see as a politically driven storm.