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Harvard Faces $113 Million Budget Shortfall After Trump Cuts

Illustrative: Anti-Zionist Harvard students participating in a sit-in against Israel amid its war targeting Hamas terrorists in Gaza. Cambridge, Massachusetts, US, Nov. 16, 2023. Photo: Brian Snyder via Reuters Connect

Harvard University registered a $113 million budget deficit caused chiefly by the Trump administration’s confiscation of much of its federal contracts and grants as punishment for, among other alleged misdeeds, its admitted failure to combat antisemitism on campus, a Harvard report revealed last week.

According to Harvard’s “Financial Report: Fiscal Year 2025,” the university’s spending exceeded the $6.7 billion it amassed from donations, taxpayer support, tuition, and other income sources, such as endowment funds earmarked for operational expenses. Harvard also suffered a steep deficit in non-restricted donor funds, $212 million, a possible indication that philanthropists now hesitate to write America’s oldest university a blank check due to its inveterate generating of negative publicity — prompted by such episodes as the institution’s botching the appointment of its first Black president by conferring the honor to a plagiarist and its failing repeatedly to quell antisemitic discrimination and harassment.

Despite the 2025 fiscal year deficit, the total value of Harvard’s endowment grew by 11.9 percent to $56.9 billion, according to the report. However, school officials noted the challenge that federal pressure has presented to its financial situation.

“Even by the standards of our centuries-long history, fiscal year 2025 was extraordinarily challenging, with political and economic disruption affecting many sectors, including higher education,” Harvard president Alan Garber said in a statement. “We continue to adapt to uncertainty and threats to sources of revenue that have sustained our work for many years. We have intensified our efforts to expand our sources of funding.”

US President Donald Trump’s abrupt cancellation of taxpayer funds awarded to Harvard maimed the university as well, dropping its federal sponsored revenue fell by 8 percent to $629 million and incinerating exorbitant dollar amounts from Harvard’s portfolio. Speaking to The Harvard Gazette on Thursday, Harvard’s chief financial officer Ritu Karla pointed to “$116 million in sponsored funds — which are reimbursements for costs the university has already incurred” that “disappeared almost overnight” when Trump penalized Harvard in April.

Harvard will continue to feel Trump’s wrath as it pays out a new tax on endowment investments which Congress imposed on the country’s wealthiest universities in July. Its liability could be as high as $368.2 million, climbing to $454.8 million by 2030, according to an analysis conducted by American Enterprise Institute (AEI) researchers Mark Schneider and Christopher Robinson.

As previously reported by The Algemeiner, in April, Trump ordered the expropriation of $2.26 billion in Harvard’s federal funds after the institution refused to agree to a wishlist of policy reforms that Republican lawmakers said would make higher education more meritocratic and less welcoming to anti-Zionists and far-left extremists. Contained in a letter the administration sent to Garber — who subsequently released it to the public — the policies called for “viewpoint diversity in hiring and admissions,” the “discontinuation of [diversity, equity, and inclusion, or DEI, initiatives],” and “reducing forms of governance bloat.” They also implored Harvard to begin “reforming programs with egregious records of antisemitism” and to recalibrate its approach to “student discipline.”

Harvard refused the president his wishes even after losing the money and took the issue to federal court. Meanwhile, it built a financial war chest, leveraging its GDP-sized assets to issue over $1 billion dollars in new debt and drawing on its substantial cash reserves to keep the lights on. Eventually, it overcame the administration in the first stage of litigation, securing from a judge appointed by former US President Barack Obama restitution of some of the funds the administration impounded — but the nine-figure sum it lost in the process has led to its largest budget deficit since the Covid-19 pandemic, according to The Harvard Crimson.

“We are also examining operations at every level of the university as we seek greater adaptability and efficiency,” Garber said in Thursday’s statement. “In parallel, we continue to ensure that our academic environment nurtures excellence in all of our endeavors. We are promoting open inquiry, constructive dialogue, and viewpoint diversity, and pursuing our priorities with the resolve that the times demand.”

In additional commentary contributed to the report, Harvard treasury officials Timothy Barakett and Ritu Kalra said, “All of these developments have raised new questions about the financial foundations of higher education and underscore a shifting federal policy environment that will shape the future.” They also said that the “this result could have been much worse,” adding, “it reflects not only the magnitude of the disruption, but also the discipline of a university community that acted quickly and with resolve.”

More disruptions are forthcoming, as Harvard may have to fight again for its taxpayer funds before a US Supreme Court with which it lost a historic case that ended racial preferences in admissions, a policy once popularly known as “affirmative action,” because the court found Harvard’s own imposition of the practice on applicants resulted in widespread discrimination against Asian Americans.

Furthermore, Harvard remains under investigation over its handling of campus antisemitism. The US House Committee on Education and the Workforce wrote to Garber last month asking the university to comply with requests for internal communications regarding discrimination complaints filed by Jewish students.

The committee said it is especially interested in documents related to an October 2023 incident in which two anti-Zionists activists, joined by a mob, assaulted a Jewish graduate student while screaming “Shame!” at him as he struggled to free himself.

“Obtaining the documents will aid the committee in considering whether potential legislative changes, including legislation to specifically address antisemitic discrimination, are needed,” said the letter, authored by the committee’s chairman, Rep. Tim Walberg (R-MI), and Rep. Elise Stefanik (R-NY). “Harvard does not appear to have disciplined — and instead has rewarded — two students who assaulted an Israeli Jewish student who was filming a ‘die-in’ protest on Oct. 18, 2023.”

Walberg and Stefanik also demanded confirmation of Harvard’s decision to pause a partnership with Birzeit University in the West Bank. The Harvard-Birzeit partnership was put into abeyance following an internal investigation of Harvard’s François-Xavier Bagnoud Center for Health and Human Rights (FXB), the institution directly affiliated with Birzeit. It is not clear what ultimately caused Harvard to discontinue the arrangement, but it is a move for which prominent members of the Harvard community and federal lawmakers have clamored before.

“As you know, postsecondary institutions that receive federal funds must maintain a safe learning environment and fulfill all obligations under Title VI and its accompanying regulations,” they continued. “This includes the obligation to promptly address discrimination, including harassment that creates a hostile environment, wherever such circumstances may be found to exist.”

Follow Dion J. Pierre @DionJPierre.

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Some of Mamdani’s Jewish allies criticize his use of ‘monsters’ to describe AIPAC

(New York Jewish Week) — New York City Mayor Zohran Mamdani on Monday defended his use of the word “monsters” to describe AIPAC at a rally Friday for progressive candidates, as some of his Jewish supporters expressed concern that the term may connote an antisemitic trope.

The war of words came as the American Israel Public Affairs Committee is increasingly a target of the progressive movement — including in acts of attempted violence — and as progressive Jews have accused some Israeli right-wing figures of dehumanizing liberal pro-Israel lobbying groups.

“Calling AIPAC and its backers ‘monsters’ casts them as less than human, rather than as human beings who are one’s political opponents,” Rabbi Jill Jacobs, head of the progressive rabbinic human rights group T’ruah, wrote in a Substack post Monday.

“I was taken aback,” Rabbi Misha Shulman, a Mamdani supporter who leads the progressive Brooklyn synagogue The New Shul, told the Jewish Telegraphic Agency about the mayor’s comments. “I didn’t like those remarks. It was a little bit of a flag for me.”

At a press conference, Mamdani said he had been quoting Italian anti-fascist philosopher Antonio Gramsci, whose quote ending “Now is the time of monsters” the mayor had cited at the top of his speech. The rally was intended to boost the mayor’s preferred progressive candidates, including Jewish congressional candidate Brad Lander, ahead of New York’s closely watched Tuesday primaries.

“I used the term to describe all those who are preventing the birth of a new world,” Mamdani told a reporter who asked about the word. He continued, “My use of the term is a broad use that speaks to the untenable nature of a status quo that is quite literally starving people in this city, all in the name of sustaining something that we simply cannot defend any longer.” He did not explain how he saw AIPAC as connected to poverty in New York.

Mamdani insisted he was referring to “not solely AIPAC,” but he singled out the organization again in his Monday remarks to reporters, saying the lobbying group was backing “a status quo for immorality.”

During the rally last week, Mamdani had stated that Gramsci’s “monsters take many forms today,” including “AIPAC, for whom the only thing more frightening than democracy being allowed to run its course is an end to genocide and [Israeli Prime Minister Benjamin] Netanyahu’s wars.” He added that AIPAC’s “goal” is “to turn us against one another.”

For some of the progressive Jews who have supported the mayor, his comments sounded alarms about the use of dehumanizing or sinister rhetoric to describe Jewish groups.

But Shulman said it was actually Mamdani’s remarks in the same speech painting AIPAC as a “dark money” group that was most alarming to him. AIPAC, a lobbying organization that also operates a political spending arm, does not conceal its donors, unlike the traditional profile of a so-called “dark money” campaign finance operation.

“For me, the question of dark money was the tougher knot,” Shulman said, calling Mamdani’s remarks a “tactical mistake.” In the context of rising antisemitism, he added, “For a left-wing leader to use that phrase, and invite traditional antisemitism into this conversation in that way, was not smart.”

Shulman is a member of Israelis For Peace, a New York-based ad-hoc group of progressive Israelis who broadly back Mamdani. While not speaking on behalf of the group, he told JTA their internal group chat lit up with debates over the appropriateness of Mamdani’s speech.

Jacobs of T’ruah said Mamdani’s remarks were part of what she described as a “disturbing trend” of recent left-wing attacks on the lobbying group, including Maine Democratic U.S. Senate nominee Graham Platner accusing his GOP opponent of being “bought and paid for by Benjamin Netanyahu” because of AIPAC’s donations to her campaign.

Rep. Ro Khanna, a California Democrat who has aspirations of higher office, also recently became the first sitting member of Congress to sign a pledge from Track AIPAC, a purported AIPAC watchdog that also targets donations from more liberal pro-Israel groups, including J Street.

Over the weekend, a cafe posted on Instagram that it had rejected a payment from liberal Jewish New York Rep. Dan Goldman, whom Lander is challenging in the primary, because the money was “probably coming from AIPAC.” (Goldman has been endorsed by both AIPAC and J Street.)

While noting that AIPAC “absolutely deserves to be criticized, sidelined, and rejected for its decades of negative influence on American foreign policy,” Jacobs wrote that such critiques should be done “without dehumanizing language, and without hinting at a grand Jewish conspiracy.”

Such pushback from Jews who have worked with Mamdani is rare. JTA reached out to representatives for several of the mayor’s most visible Jewish allies on Monday, including Lander and Vermont Sen. Bernie Sanders, who spoke at the same rally. Sanders also criticized AIPAC. Neither returned requests for comment by press time. On social media after the rally, Lander celebrated the event, calling it “a tremendous honor” to rally alongside Mamdani.

IfNotNow and Jews For Racial and Economic Justice, two Jewish activist groups that endorsed Mamdani, similarly did not respond to requests for comment by press time. A spokesperson for Rep. Jerry Nadler, the retiring liberal Jewish Democrat who had endorsed Mamdani’s mayoral bid, also did not respond by press time.

J Street, the liberal pro-Israel lobby that positions itself as a foil to AIPAC, declined to comment on Mamdani’s remarks. Last month, hundreds of Jewish leaders criticized Yehuda Leiter, Israel’s ambassador to the United States, after Leiter called J Street a “cancer within the Jewish community.” Nadler was among the signatories of an open letter that said Leiter “dehumanizes fellow Jews.”

Centrist Jewish groups and figures, already no fans of Mamdani, also bashed his AIPAC comments. “Referring to fellow New Yorkers as ‘monsters’ is outrageous and dangerous, and the impact of your words extends far beyond politics,” American Jewish Committee CEO Ted Deutch wrote on X, addressing Mamdani.

Rep. Josh Gottheimer, a Jewish Democrat representing New Jersey, wrote, “Swap ‘AIPAC’ for ‘Jews’ and it’s the oldest antisemitic conspiracy theory in the books.”

Both posts were reposted by AIPAC, which otherwise did not comment.

The post Some of Mamdani’s Jewish allies criticize his use of ‘monsters’ to describe AIPAC appeared first on The Forward.

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U.K. PM Starmer leaves behind mixed record on antisemitism

(JTA) — U.K. Prime Minister Keir Starmer, who resigned the premiership on Monday, leaves behind a mixed record on fighting antisemitism in the Labour Party that Jewish organizations say will help shape their expectations for his successor.

Starmer announced that he was stepping down outside 10 Downing Street in the morning local time. He made the decision in the wake of mounting pressure from Labour members of Parliament and waning political support after the party’s devastating losses in the May 7 local elections and the success of political rival Andy Burnham in Manchester’s parliamentary election last week.

Burnham, the former mayor of Greater Manchester, has emerged as the leading contender after winning a Manchester-area by-election on Friday with 55% of the vote. Burnham has sought to position himself prominently on antisemitism and relations with the Jewish community in his bid to take over from Starmer.

In a post on X, Burnham thanked Starmer for his leadership and said the PM’s decision to resign “marks the beginning of a transition and it is important that this process is conducted in an orderly and responsible way. I will put myself forward as part of this process.”

Starmer confirmed he would remain on as caretaker prime minister until a successor was chosen.

“The question my party is asking now is whether I am best placed to lead us into the next general election,” he said. “I have heard the answer of my parliamentary party to that question, and I accept that answer with good grace.” 

The Jewish Labour Movement thanked Starmer in a post on X, noting that two years ago he inherited the party “at its lowest point” from former party leader Jeremy Corbyn, when it was “institutionally antisemitic.” It added, under Starmer, “our party has a clean bill of health on antisemitism.”

However, Starmer’s tenure was still met with plenty of criticism from the Jewish community over his handling of antisemitism, particularly in light of ongoing antisemitic attacks in the country. In recent months alone, four Hatzola ambulances were lit on fire; there were attempted attacks on three synagogues; two Jewish men in the Orthodox neighborhood of Golders Green were stabbed. Dozens of people have been arrested in connection with the incidents.

Starmer entered office in July 2024, leading his country’s thorny relationship with Israel in the aftermath of the Hamas Oct. 7, 2023, attack against the Jewish and the Gaza war that followed. He angered Israel with steps such as recognizing Palestine as a state and promising to uphold the International Court of Justice’s arrest warrant against Prime Minister Benjamin Netanyahu for war crimes.

With Starmer’s upcoming departure, focus has shifted to the contest to replace him, bringing renewed scrutiny to candidates’ positions on antisemitism, relations with the Jewish community, and Israel.

Starmer said he would give his successor his “full and unequivocal support,” adding that nominations would open on July 9 and conclude before the parliamentary summer recess on July 16.

Board of Deputies of British Jews President Phil Roseneberg posted on X, “When he took on the leadership of the Labour Party the first thing @Keir_Starmer said he would do is ‘tear out the poison of antisemitism by its roots’. His subsequent actions were transformative within the Party.”

He praised Starmer’s government for providing “unprecedented security funding,” and introducing legislation to proscribe the IRGC.

Burnham, for his part, has spoken out against antisemitism in the wake of violence attacks. Following the October 2025 Yom Kippur attack at the Heaton Park Congregation synagogue in Manchester, in which two people were killed, Burnham said in an official release, “Tonight, our first thoughts are with the families of those who have died, those injured and those traumatised by this – a horrific antisemitic attack on our Jewish friends and neighbours. We condemn it outright.”

He also wrote in a post on X on the same day, “Today we have witnessed a vile attack on our Jewish community on its holiest day. We condemn whoever is responsible and will do everything within our power to keep people safe.”

His positions on Israel and Gaza have also come under scrutiny. In a June 4 interview with The Guardian, Burnham did not invoke the term “genocide” in relation to the war in Gaza, but did say, “I can’t judge things of that enormity from where I am as mayor of Greater Manchester.”

He added, “But I do have concerns about the disproportionate nature of what has happened in terms of the destruction, and there has to be a full process of investigation and accountability.”

Additionally, 10 days after the Oct. 7 attacks, Burnham called for a ceasefire in a joint statement with 10 Greater Manchester leaders. The statement read in part, “We condemn unreservedly the appalling terror attacks on innocent civilians in Israel by Hamas on 7th October.”

The statement also noted that Israel has the right to take “targeted action within international law” to defend itself and to rescue its hostages, but added, “We also have profound concerns about the loss of thousands of innocent lives in Gaza, the displacement of many more and widespread suffering through the ongoing blockade of essential goods and services.”

Referencing his expected leadership bid, Culture Secretary Lisa Nandy told the Jewish News on June 17 that Burnham had a few weeks earlier met with Jewish communal leaders in Greater Manchester.

When it comes to Israel, Nandy said Burnham “believes in justice, so he’s acutely aware of the need for a safe homeland for Jewish people, you know, and the particularly unique historical reasons why Israel came into existence.”

The post U.K. PM Starmer leaves behind mixed record on antisemitism appeared first on The Forward.

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NY cafe deactivates account after backlash over treatment of Rep. Goldman

(New York Jewish Week) — A Brooklyn café posted on Instagram that it refunded a purchase made by Rep. Dan Goldman, saying that it doesn’t serve “genocide enablers.”

“Do you see how it doesn’t taste like genocide juice?” the post by Poetica Coffee read. “Or are you still having a hard time telling the difference?”

In the post, the coffee shop included a photo of Goldman at the Lorimer Street location of their five Brooklyn spots. “Too bad we didn’t recognize you right away or we would have turned you away,” the post said.

The caption on the post said Goldman’s money is “probably coming from AIPAC anyways” and told Goldman never to come back. The post was accompanied by the song “F— You” by British singer-songwriter Lily Allen.

Jewish community leaders immediately condemned the post, which was deleted when Poetica Coffee deactivated its account Monday.

“Assigning collective blame to Jews or perceived supporters of Israel over disagreements with Middle East policies is the very definition of antisemitism,” Mark Treyger, CEO of the Jewish Community Relations Council of New York, said in a statement. “It is shameful and hateful, and businesses open to the public do not get to discriminate based on religion, ancestry, ethnicity, or stereotypes.”

According to its website, Poetica Coffee is “rooted in the Uzbek tradition where the guest is sacred, the books are unbanned, and the door is open to everyone.”

Goldman, who describes himself as “unabashedly pro-Israel,” is running for reelection in a contentious election Tuesday against former New York City Comptroller Brad Lander, an Israel critic who also identifies as a “liberal Zionist.” Lander’s campaign did not respond to request for comment from the Jewish Telegraphic Agency.

“I am sorry to see this post,” Goldman said in a statement earlier Monday. “The barista could not have been nicer to my 7-year-old daughter and me — allowing her to use the bathroom even though we had not purchased anything. I made sure to buy a coffee in return for her kindness. I hope you at least make sure she gets the tip that she deserved.”

Before deactivating its account, Poetica Coffee said it had been the recipient of multiple death threats, including at least one with Islamophobic rhetoric.

Goldman was refunded $9.82, according to now-deleted screenshots from Poetica’s post.

The post NY cafe deactivates account after backlash over treatment of Rep. Goldman appeared first on The Forward.

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