From CNBC: 2025-04-01 07:00:00

The Trump administration canceled $400 million in grants and contracts to Columbia University over pro-Palestinian protests. Columbia agreed to demands, but funds remain withheld. Backlash grows as critics argue the university should use its $14.8 billion endowment to cover the shortfall instead. Dozens of studies are in limbo.

Columbia’s endowment ranks 12th in the U.S. at $14.8 billion. 658 institutions have endowments totaling $873.7 billion, concentrated with 86% held by 20 universities. Columbia averages nearly $500,000 in endowments per student, investing in risky assets like private equity and real assets.

University endowments are not piggy banks; most funds are restricted by donors. Endowments typically spend only 5% annually, with restrictions often overstated. Universities can increase spending in crises, but financial obligations are real. Depleting endowments could affect future cash flow, but experts disagree on the impact.



Read more at CNBC: Federal funding cuts raise questions about university endowments