Trump's Funding Shift Targets Elite Universities

Published on 5.31.25

  The Trump administration's proposal to redirect federal grants from elite institutions like Harvard University to trade schools has sparked a heated debate over the nation's higher education priorities. This move is part of a broader effort by the administration to address perceived issues at top universities. US Education Secretary John King Jr. has expressed concern that cutting federal funding for major research universities like Harvard could hinder innovation and lead to the loss of top talent. A $100 million in federal contracts with Harvard University are set to be canceled, with taxpayer money instead allocated to vocational schools training plumbers and electricians. Professor Alan Dershowitz has described the administration's actions as "overboard," suggesting that the measures may not effectively address the issues at hand. The shift in funding priorities could also have a significant impact on universities' investment strategies, requiring them to liquidate investments in private equity and hedge funds to access cash quickly. The Trump administration's efforts to redirect federal funding from elite institutions to trade schools nationwide have sparked a contentious debate over the nation's higher education priorities.

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