Harvard University battles Trump administration’s $2.2 billion funding cuts with pay reductions and a lawsuit, as it refuses to comply with governance demands.

Harvard University President Alan Garber has agreed to a 25% voluntary pay cut for the 2025–26 academic year, following a $2.2 billion funding freeze imposed by the Trump administration. The decision comes as Harvard faces mounting financial pressure and administrative demands from Washington.

A university spokesperson confirmed the pay cut to Fox News, adding that other institutional leaders are also making voluntary financial contributions in response to what the school described as “significant challenges.” In March, Harvard implemented a hiring freeze and instructed departments to tighten spending. The university has also paused non-essential capital projects and halted merit-based pay increases for faculty and staff for fiscal year 2026, which begins July 1, 2025.

This marks the second time Garber has voluntarily reduced his salary. As provost in 2020, he took a similar 25% pay cut during the COVID-19 pandemic. Past Harvard presidents have reportedly earned up to $1 million annually, according to The Harvard Crimson.

The financial strain stems from the Trump administration’s decision to freeze federal funds to the university. The move is part of a broader crackdown on elite universities, which the administration says have failed to address antisemitism and foster intellectual diversity—issues brought to national attention amid campus protests related to the Israel–Hamas conflict.

On April 11, the White House sent a letter to President Garber and Harvard Corporation Lead Member Penny Pritzker, accusing Harvard of failing to uphold civil rights laws and promoting a hostile academic environment. The letter demanded major reforms in governance, hiring, and admissions policies—particularly regarding international students—warning that failure to comply would result in further funding cuts.

Harvard pushed back, with Garber stating that “no government… should dictate what private universities can teach, whom they can admit and hire, and areas of study and inquiry they can pursue.”

Following Harvard’s refusal to comply with the demands, the Trump administration froze $2.2 billion in federal funding and, according to The Wall Street Journal, is considering cutting an additional $1 billion.

In response, Harvard has filed a lawsuit against the administration, arguing that the funding freeze is unlawful.

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