Due to alleged antisemitism on campus, the Trump administration suspended over $2.2 billion in federal grants to Harvard. Harvard filed a lawsuit. The restoration of funds was mandated by a federal judge. The government filed an appeal. The funds were in legal limbo, and administrators at the Faculty of Arts and Sciences, which houses the humanities, social sciences, and arts, were using spreadsheets to conduct scenario analyses that no one wanted to see. The budget for the arts and humanities alone suffered a direct loss of almost $2 million. The number of PhD admissions in the sciences was reduced to a quarter of what it used to be. Emergency meetings were held by faculty. Suddenly, the organization that had spent decades fostering the notion of intellectual permanence was preparing for unforeseen circumstances.

The $53 billion endowment, which is the largest university endowment in the world, is the number that is always brought up in these situations. It is typically used to support the claim that Harvard should just quit whining and spend its way out of trouble. Almost all of the pertinent information about how the money actually functions is hidden by that figure. Economist John Y. Campbell, who reimagined FAS’s endowment management in 2021 and served on the board of the Harvard Management Company for seven years, has been making this point with meticulous precision. Approximately 80% of the endowment is donor-restricted, which means that it can only be used for the particular uses that each donor has specified, such as building maintenance, financial aid, professorships in specific fields, and specific research areas. Under the direct control of university leadership, less than 5% of the total is truly unrestricted money. It is evident that the $53 billion is not a war chest. According to Campbell, it’s a collection of particular pledges made to particular donors that result in yearly distributions that are already mostly devoted to paying for Harvard’s operating budget, which enables the university to operate at all.

In this context, the arts are especially vulnerable. When institutions are under budgetary pressure, creative programs—visual arts, theater, music, and the humanities that support them all—tend to suffer the most because their worth is more difficult to measure using the metrics that funding agencies, both public and private, typically favor. The Faculty of Arts and Sciences at Harvard made a cautious announcement in April 2026 that it was getting ready for a major administrative reorganization. In comparison to their already small budgets, the arts and humanities were facing a reduction that was disproportionately large.

In February 2026, an uncommon kind of reaction emerged into this landscape. As part of a challenge to raise $100 million by June, a group of alumni donors led by Alfred and Rebecca Lin of the 1994 class announced a $50 million donation toward an endowment fund for PhD students across FAS and SEAS. The Research Accelerator Challenge, as it was called, was specifically created to provide PhD candidates with the kind of financial security that enables them to pursue high-risk, high-reward research without relying on the now-unreliable federal grants. In a sense, it was a workaround. This is an attempt to shield the institution’s intellectual work from political weather rather than a solution to the political issue.

It’s difficult to ignore the unique aspect of that gesture—wealthy alumni essentially taking over the role of the federal government by providing funding for the prerequisites for scholarships. Harvard’s own economists would likely respond cautiously to the question of whether this is a sound model for academic funding. According to Campbell’s framework, short-term relief can be obtained at the expense of long-term capacity by spending endowment distributions above the planned rate. To put it another way, generosity has a budget. Watching all of this unfold from a position that feels uncomfortably exposed for an institution of this size and prestige are the arts and humanities programs that make Harvard what it is, the ones that send students into the world with the capacity to think critically about human experience.

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