Major changes are sweeping through some of America’s most prestigious universities as a result of deep federal funding cuts. Harvard, Columbia, and Princeton are among the institutions hit hardest, with research programs scaled back, hundreds of staff laid off, and key operations forced to downsize.
The financial strain stems from recent decisions under U.S. President Donald Trump’s administration, which has withdrawn billions in federal research grants, citing concerns over antisemitism and diversity, equity, and inclusion (DEI) initiatives. In addition, a new executive order now restricts foreign financial support to universities, while Republican lawmakers have proposed raising taxes on large university endowments.
A Sector Under Pressure
“Everything is on the table,” said Ruth Johnston of the National Association of College and University Business Officers, as institutions are being forced to rethink their funding models and long-term strategies.
The impact is already visible:
Harvard University
- Harvard has filed a lawsuit against the federal government over lost research grants.
- University President Alan Garber has taken a personal pay cut and allocated $250 million from reserves to sustain essential operations.
- The School of Public Health has lost nearly half its budget, resulting in layoffs and reduced graduate admissions.
Columbia University
- Columbia has lost over 300 research grants.
- Around 180 staff members have been laid off.
- Several projects are on hold, with emergency funds used to postpone deeper cuts.
- Salary hikes have been frozen, and early retirement packages are being offered.
Princeton University
- Facing a projected 10% budget cut, Princeton has already seen federal grants paused.
- Plans for financial restructuring are underway, similar to announcements made at Michigan State University, though specifics remain unclear.
Political & Academic Fallout
Analysts note that elite and traditionally liberal institutions appear to be bearing the brunt of the changes. However, even universities in Republican-led states could soon feel the squeeze, albeit with less visibility. The broader higher education ecosystem is bracing for a new era of austerity.
While student life remains largely unchanged for now, behind the scenes, the financial toll is growing—marked by job losses, stalled projects, and the quiet disappearance of everyday perks such as office coffee and landline services.
As schools struggle to adapt, the conversation continues over how political ideology is shaping the future of American research and academia.
