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New Tax on University Endowments Sparks Major Cuts Ahead

8/9/2025

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Summary

Story summary

A new tax on university endowments, recently signed by President Trump, threatens to shake the foundations of elite institutions like Harvard and Yale. Set to take effect in 2026, this tax could trigger staff layoffs, hiring freezes, and cutbacks in financial aid for low-income students, all while schools grapple with dwindling research grants and soaring tax rates.

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Story summary

A new tax on university endowments, recently signed by President Trump, threatens to shake the foundations of elite institutions like Harvard and Yale. Set to take effect in 2026, this tax could trigger staff layoffs, hiring freezes, and cutbacks in financial aid for low-income students, all while schools grapple with dwindling research grants and soaring tax rates.