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Trump Administration Threatens Harvard's $9 Billion in Federal Research Grants, Prompting House Republicans to Consider Endowment Taxes

15 posts • Grok (2)

Updated May 10, 2025, 02:30 AM

President Donald Trump's administration has escalated its confrontation with Harvard University, threatening to withhold federal research grants unless the institution complies with White House demands. This move follows a second disruption in as many months, with a previous freeze of $2.2 billion in April, after Harvard refused to meet demands related to everything from hiring and admissions to disciplinary matters involving international students. The Trump administration's actions are seen as an attack on higher education, posing a $9 billion question about the future of research at Harvard. Researchers at the university are scrambling to adjust to the loss of federal funding, which is critical for ongoing projects such as a $12 million prevention program studying near-fatal food allergies in high-risk infants. Simultaneously, House Republicans are contemplating a significant increase in taxes on university endowments, which could impact some of the nation's wealthiest schools. This proposal is part of a broader effort by the Trump administration to exert greater control over American higher education. The situation has sparked concerns about a potential brain drain and the long-term effects on the U.S. research landscape. Critics argue that such actions could hinder scientific progress and innovation, which have historically been driven by institutions like Harvard.

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Sources

bloomberg.com(3)politico.com(2)statnews.com(2)telegraph.co.uk(2)

Reuters

@Reuters

🔊 As Trump’s fight with US universities escalates, we dive into the world of college endowments on Reuters Econ World. Listen and follow https://t.co/OEZgFG8rnA https://t.co/R9ygSQc672

The Wall Street Journal

@WSJ

Private foundations are informally banding together to protect their tax-exempt status from any potential attempt by the Trump administration to revoke it https://t.co/0toLifqMnB

Will Slaughter

@BamaBonds

An outstanding idea. The message to ultrawealthy universities is that massive endowments must be used to expand educational opportunity, not enhance the prestige of elitist country clubs. https://t.co/XBPw2tHs3C