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Brown took out a $300 million loan last Friday amid the Trump administration’s recent threats to the University’s federal funding.
A White House official previously told The Herald that it planned to freeze $510 million of Brown’s federal funding as it reviews the University’s response to alleged antisemitism and Brown’s diversity, equity and inclusion initiatives.
The loan — from an unidentified lender — holds a 4.86% interest rate and will mature in 2032, according to a regulatory filing from April 15.
This additional debt comes as the University faces a $46 million budget deficit. Brown’s endowment sat at $7.2 billion as of June 2024.
“Given the volatility in the capital markets and the uncertainty regarding future federal policy related to research and other important priorities of Brown, the University is fortunate to have a number of sources of liquidity … that are available to help us manage our finances and priorities during this period,” University Spokesperson Amanda McGregor wrote in an email to The Herald.
“Rather than entering the public taxable debt markets, as some other highly rated peers have done recently, Brown chose to negotiate directly with a lender in order to tailor the loan to our particular objectives,” she added.
Earlier this month and amid similar threats to federal funding, Harvard announced plans to issue $750 million in issuing bonds. Harvard currently faces a $2.2 billion freeze to its federal funding after refusing to meet a list of demands made by the Trump administration.
In a faculty town hall earlier this month, President Christina Paxson P’19 P’MD’20 described Columbia’s compliance to the Trump administration’s demands in the face of funding cuts as “ineffective.” Brown has not yet received a list of demands from the White House, and as of Monday, the University still has not received official government communication regarding the planned $510 million funding freeze.
Cate Latimer is a university news editor covering faculty, University Hall and higher education. She is from Portland, OR, and studies English and Urban Studies. In her free time, you can find her playing ultimate frisbee or rewatching episodes of Parks and Rec.
