Endowment offers Harvard flexibility but also risks - Harvard Gazette

The University of Harvard has begun this fiscal year with its endowment totaling a record $53 billion. However, the majority of this wealth is earmarked for specific purposes, with less than 5% unrestricted. The recent freeze on research grants by the Trump administration has compounded the financial challenges, highlighting the balancing act between addressing immediate financial uncertainties and long-term strategies. John Y. Campbell discusses how the endowment is currently being utilized, particularly in relation to budgets at the Faculty of Arts and Sciences, emphasizing its critical role under current fiscal pressures.

"Less than 5 percent of the overall value of Harvard's endowment is unrestricted and directly under the discretion of University leadership, highlighting the challenges in utilizing funds effectively."

"The recent budget deficits faced by Harvard's Faculty of Arts and Sciences indicate a reliance on endowment funds for financial stability amid political pressures and funding uncertainties."

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