What to Know When Trump Stops Harvard and Other Universities from Receiving Federal Funds

President Trump is attempting to change which universities are eligible to receive government funding, a tradition that dates back to World War II.

President Trump threatened Harvard University's tax-exempt status on Tuesday after the university rejected his administration's requests on hiring, admissions, and curriculum, further escalating the conflict between the Trump administration and higher education institutions.

In addition to the billions of dollars in government assistance that colleges receive year, his threat and the stakes involved brought attention to how that practice began and what all of that money is used for.

What is the purpose of government funding?

Work stoppages, contract terminations, medical research jeopardization, and student uncertainty have all resulted from the funding restrictions. University-affiliated hospitals, such as Boston Children's Hospital and Dana-Farber Cancer Institute, which are both connected to Harvard, may also be impacted by cuts.

Universities have emphasized that dozens of scientific and medical projects, including ones on diabetes and cancer, would be at risk if federal funding were to disappear.

Cornell said that grants that were impacted included "research into new materials for jet engines, propulsion systems, large-scale information networks, robotics, superconductors, space and satellite communications, as well as cancer research" following the Trump administration's $1 billion freeze on the university.

Northwestern said that the freeze will impede its research on robotics, nanotechnology, overseas military training, and Parkinson's illness when Mr. Trump withdrew $790 million from the institution.

According to the University of Pennsylvania, faculty from seven different institutions were impacted, and $175 million in federal funding was suspended. In a statement, the president of Penn said that their contracts covered research on reducing hospital-acquired infections, screening drugs for lethal viruses, and safeguards against chemical weapons.

Universities have their own funding, do not they?

Both yes and no. Tuition and fees, private gifts like endowments, research grants, and state and federal financing support the majority of colleges. However, a lot of that money has restrictions.

In 2024, Harvard had the largest endowment fund of any American university, with $53.2 billion.

However, the endowment fund does not act as the school's A.T.M.

When did significant federal funding for colleges and universities start to arrive?

In order to support the war effort, the U.S. government began providing financial aid to colleges around the time of World War II. This funding was used for medical research, innovation, and student financial aid.

Higher education and the federal government quickly developed a mutually beneficial relationship. Universities became dependent on sustained funding as the government relied on them to generate both innovative scientific research and educated, employable pupils.

About $3.4 billion was allocated by the government to higher education in 1970. Individual institutions now rely on potentially billions of dollars, primarily for research and financial aid. Just Harvard gets $9 billion.

Many funds have particular limitations that specify when and how they can be used. For instance, at Harvard, donors allot 70% of the endowment's yearly allocation to particular departments or projects. Endowments may be made expressly for graduate fellowships or exclusively to the T.H. Chan School of Public Health. The amount that can be spent for discretionary spending may also be subject to legal limitations.

Now what?

Citing its harsh limitations, including those on freedom of expression, Harvard became the first university to reject Mr. Trump's demands. Federal authorities retaliated by freezing almost $2 billion in funding. However, Harvard's denial of Mr. Trump's demands might be a turning point in his criticism of American higher education.

"It would have been almost impossible for other schools to do so if Harvard had not taken this stance," Ted Mitchell, president of the American Council of Education, told The New York Times.

After watching Columbia give up to Mr. Trump in order to keep $400 million in federal funding, university administrators throughout the country will now watch Harvard and its president, Alan M. Garber, as they continue their battle against the Trump administration. The Trump administration's next course of action is unknown, but potential measures include looking into Harvard's nonprofit status and revoking more international student visas.

Reporter Talya Minsberg of the Times covers breaking and emerging news.