Harvard's Federal Funding Is Now Frozen, but What Is That Money Used for?

The Trump administration has worked hard to use the federal funding it grants to universities to change how these schools operate. While some schools have capitulated, Harvard University announced on April 14 that it would not be giving in to Trump's demands. Following the news that Harvard had refused to cave, the administration announced that it would be freezing $2.2 billion in funding for the university, as well as a $60 million contract.

Following the news that that money would be frozen, many wondered what Harvard was receiving money for in the first place. Here's what we know.

It might be surprising to hear that Harvard is receiving federal funding, especially when you consider how much the school is charging its students in tuition. On top of that, the school also has what is undoubtedly one of the most generous alumni bases in the country and likely receives millions in donations that way.

The federal funding that Harvard was granted was not for the school generally but for specific research projects in a variety of areas.

Essentially, the federal government has grant programs that Harvard researchers were awarded to look into all sorts of different academic pursuits, from new treatments for various ailments to various economic problems. All of those grants were frozen, meaning that the people who draw their salaries from them or use the funds to conduct their research will need to find another source of revenue if they want that research to continue.

Harvard's endowment currently sits at more than $53 billion, so the university clearly made the calculation that it did not need these federal funds in order to continue operating. According to the university's statement, it values its independence as an educational institution too highly to capitulate to the administration's proposed policy changes.

“We have informed the administration through our legal counsel that we will not accept their proposed agreement,” Harvard President Alan M. Garber said in a statement. “The University will not surrender its independence or its constitutional rights.”

Trump had suggested that cuts to the federal funds would be made if changes to school policy weren't made, including the elimination of the school's diversity, equity, and inclusion program, banning masks on campus, and several others.

“For the government to retreat from these partnerships now risks not only the health and well-being of millions of individuals, but also the economic security and vitality of our nation," the statement also read.

It's unclear what this funding freeze might mean for the people working on these individual projects or whether the Trump administration will hold firm in keeping the money frozen for the next four years.

Harvard was the first elite institution to rebuke Trump's demands, and it seems that they may have spurred a wave of similar activity. Although some schools have capitulated to the administration's demands, it's unclear whether that actually results in you receiving your federal funding or whether it's designed more to humiliate individual schools.