Brown University secured a $500 million loan in July following the Trump administration’s decision to revoke $510 million in federal grants. The funding cut was reportedly due to the Ivy League school’s continued promotion of diversity, equity, and inclusion (DEI) initiatives, as well as its failure to address antisemitism on campus.
This marks the second major loan taken out by Brown in recent months. In April, the university borrowed $300 million after a federal funding freeze. The financial strain has prompted university leaders to warn of potential “significant cost-cutting” measures. In a June statement, Brown cited several challenges, including reductions in research grants and increased federal taxes on university endowments.
“On July 16, Brown University entered into a $500 million term loan directly with a financial lender,” a university spokesperson told the Daily Caller. “Given recent volatility in capital markets and uncertainty related to evolving federal policy related to higher education, research and other important priorities of Brown, the University is fortunate to have a number of sources of liquidity, including commercial paper programs, bank lines and the private and public debt markets, that are available to help Brown manage its finances and priorities.”
Brown has continued to pursue DEI initiatives even after the Supreme Court’s 2023 ruling that effectively banned affirmative action in college admissions. In December 2024, the university announced that it would implement “targeted communications campaigns” and deploy recruitment officers focused on promoting the “matriculation and retention of a diverse community of students.” At the time, Brown stated that it remained “committed to complying with the law while fostering a diverse and inclusive community as integral to our mission of academic excellence.”
In February, the Trump administration vowed to take action against Brown over campus antisemitism, following reports that Jewish students were threatened during anti-Israel protests. In June, Brown joined Harvard University in a lawsuit challenging the federal funding cuts. It also filed a separate lawsuit in April, alongside other institutions, pushing back against a Department of Education policy that capped indirect research funding cost rates.
Even before the funding cuts, Brown was facing financial troubles, including a $46 million budget deficit. The university imposed a hiring freeze in March in an effort to control spending.
