• Harvard University plans to borrow $750 million amid federal funding threats related to alleged antisemitism.
• The funding comes after the Trump administration reviewed $9 billion in federal grants tied to Harvard.
• Similar moves have been made by Princeton University amid concerns over their own federal funding.
• Harvard aims to use the funds for general corporate purposes as part of a contingency plan.
• The university presently holds a $53 billion endowment but is facing financial pressures due to federal regulations.

Harvard University has announced plans to borrow up to $750 million through the issuance of taxable bonds, following threats from the Trump administration to review approximately $9 billion in federal grants awarded to the institution. This decision comes as part of Harvard's contingency planning amid allegations of antisemitism on its campus stemming from a wave of pro-Palestinian protests.

The federal government, in its communications with Harvard, has stipulated conditions for continuing federal funding, including a prohibition on certain protest activities. Harvard confirmed receipt of these directives but has not provided further comments on the situation. A spokesperson for the university stated, "As part of ongoing contingency planning for a range of financial circumstances, Harvard is evaluating resources needed to advance its academic and research priorities," as reported by Reuters.

The proposed borrowing is a part of Harvard's strategy to ensure continued operations despite rising federal scrutiny. Presently, Harvard carries a debt of approximately $7.1 billion, projected to increase to about $8.2 billion after the bond issuance. Notably, Harvard’s endowment stands at a staggering $53 billion, the largest among U.S. universities, and this financial cushion allows the institution some flexibility amidst these turbulent times.

Similar actions were noted at Princeton University, which recently indicated plans to issue around $320 million in taxable bonds after experiencing a freeze on numerous federal research grants. The Secretary of Education has emphasized that failure to address antisemitic discrimination could result in further reputational and financial damage.

The scrutiny from the federal government is largely in response to a series of protests on college campuses, including Harvard, criticizing Israel's military actions, which escalated in recent months. These societal tensions have garnered conflicting perspectives; while some view the protests as legitimate political expression, others, including some Jewish students, report feeling threatened by the atmosphere surrounding these demonstrations.

In recent weeks, the U.S. Department of Education has issued warnings to numerous universities, including Harvard, about potential enforcement actions concerning antisemitism, potentially impacting federal funding. Harvard's situation serves as a significant touchpoint in the ongoing discussion about free speech, university funding, and the political climate surrounding higher education in America, as outlined by India Times and elaborated on by The Jakarta Post.