Harvard Says Legal Challenges With Trump Admin Could Have ‘Adverse Effect’ in Bond Sale Disclosure

Harvard University warned investors that mounting legal challenges with the White House over its $2.2 billion federal funding freeze could materially harm the institution’s financial standing, reputation, and operations, according to a disclosure filed on Tuesday in connection with a successful bond sale.

“Further developments in these and other matters are likely, which may include but are not limited to legal actions such as audits, investigations, lawsuits, charges, or other proceedings,” the disclosure reads, in reference to the Trump administration’s Monday freeze and review of nearly $9 billion in federal funding.

“The impact of any such developments or matters is not known, but there may be a material adverse effect on the University’s business, reputation, financial profile, and operations,” the disclosure continues.

The disclosure came with the announcement that the University had successfully sold all $750 million in bonds that it put up on the market last week. The bond sale was referred to as “part of ongoing contingency planning for a range of financial circumstances,” by a University spokesperson last week.

The disclosure also listed off a series of potential threats to the University from the federal government — including cuts to federal funding, eliminating Harvard’s status as a nonprofit, and increasing its endowment tax — claiming that the listed actions would impact “standing in the higher education sector and its revenues, expenses and net assets.”

Just hours before the disclosure was filed, United States President Donald Trump made threats to revoke Harvard’s tax-exempt status on his social media platform Truth Social.

The University’s bond sale — announced just one week after the Trump administration declared its federal review of Harvard-affiliated multi-year research funding — brought its total offering this fiscal year to $1.2 billion after an initial $450 million issuance in March.

Still, the University’s successful sale is a sign of investor confidence in Harvard’s financial strength, especially considering the recent volatility in the bond market as a result of the Trump administration’s tariff policies.

—Staff writer Avani B. Rai can be reached at avani.rai@thecrimson.com. Follow her on X @avaniiiirai.

—Staff writer Saketh Sundar can be reached at saketh.sundar@thecrimson.com. Follow him on X @saketh_sundar.