Ivy League Fortitude: Harvard's Financial Showdown Against Trump's Policies

The financial resilience of Harvard University, receiving a coveted triple A rating, is being tested by the Trump administration's tax and endowment fund threats. S&P Global remains confident that only the most extreme scenarios could affect these esteemed Ivy League institutions.

Amid allegations of anti-Semitism, the administration has cut substantial grants and threatened to restrict international student admissions. Consequently, Harvard is pursuing legal action, securing an injunction on enrollment issues recently. However, the university's tax-exempt status faces further scrutiny, with potential endowment tax increases looming.

S&P's analysis indicates that despite the political pressures, Harvard's financial stability is robust. Its ability to attract full-paying U.S. students in place of international candidates adds to its resilience, even as similar institutions like Swarthmore College face outlook downgrades. The higher education sector anticipates new enrollment figures and clarity on tax reforms by September.

(With inputs from agencies.)