Elite US Universities Slash Budgets as Endowment Tax Hike Bites Despite Strong Returns
Leading US institutions are cutting spending on PhD programs and research facilities to offset a new tiered excise tax on endowment income. The measures come even as universities report robust investment returns, with some facing potential $1 billion tax bills over five years.
Budget Cuts Hit Prestigious Campuses
Several elite American universities are implementing significant spending reductions despite reporting strong investment performance, according to recent reports. Sources indicate institutions including Harvard, Stanford, Yale, Princeton and MIT are facing a sharp increase in the excise tax on endowment income beginning next July, prompting austerity measures ranging from hiring freezes to suspended capital projects.