Brown University borrows $500M after Trump freezes federal funds over DEI, anti-Semitism concerns
The Ivy League school in Providence, Rhode Island with a $7 billion endowment has taken out a $500 million loan following significant cuts to federal funding.
The Trump administration froze $510 million to Brown University in April over concerns about the school’s policies on Diversity, Equity, and Inclusion (DEI) and anti-Semitism.
An Ivy League school in Providence, Rhode Island with a $7 billion endowment has taken out a $500 million loan following significant cuts to federal funding.
The Trump administration froze $510 million to Brown University in April over concerns about the school’s policies on Diversity, Equity, and Inclusion (DEI) and anti-Semitism. The university secured a $300 million loan immediately following the funding freeze.
The school cites federal policies as the primary cause for the new loan.
“Given recent volatility in capital markets and uncertainty related to evolving federal policy related to higher education, research and other important priorities of Brown, the University is fortunate to have a number of sources of liquidity,” a university spokesman told The Brown Daily Herald.
The university has taken out another large loan despite operating an endowment of $7.2 billion.
“Distinct from the generous donations that Brown’s alumni, parents, students, and friends make to the University through the Annual Fund, which are spent immediately, the funds from the endowment are invested and a portion of the earnings used to support a purpose designated by the donor,” the school writes.
“The mission of the endowment is to financially support the many endeavors of the University’s faculty, students and staff, shape the character of Brown as an institution, and ensure its permanence,” it continues.
Other notable universities have faced federal funding cuts over anti-Semitism and DEI.
On April 8, the Trump administration halted $1 billion in funding to Cornell University in Ithaca, New York, and $790 million to Northwestern University in Evanston, Illinois.
It was reported on Saturday that Cornell is close to an agreement with the government to restore the funding.
Meanwhile, Northwestern cut over 400 staff positions on Tuesday to compensate for the funding loss.
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In April, Harvard University received a $750 million loan amid a federal review of $9 billion in funding for the institution.
“Harvard’s failure to protect students on campus from anti-Semitic discrimination - all while promoting divisive ideologies over free inquiry - has put its reputation in serious jeopardy. Harvard can right these wrongs and restore itself to a campus dedicated to academic excellence and truth-seeking, where all students feel safe on its campus,” Secretary of Education Linda McMahon said at the time.
The federal government went on to halt $2.6 billion in funding. The university is reportedly willing to settle for up to $500 million.
The Trump administration also froze hundreds of millions in funding to Columbia University because of the school’s failure to respond adequately to anti-Semitism concerns. The school settled with the federal government on July 23 for $221 million to restore $400 million in funding.
Campus Reform contacted Brown University for comment. This article will be updated accordingly.
