Or alternatively, their investments from one account produce $100K per year, their investments from another account (non-Federal grants) produce an unknown amount, and they have a job (tuition payments) that produces another unknown amount. How significant is 40% of the 100K?
We don't know unless we fill in the unknown numbers. Knowing that the amount of federal aid being removed is 40% of an estimate of the amount produced by one source (the endowment) isn't enough information to answer the question. The right question is what percentage of their budget this represents.
From what I can tell, Harvard's actual annual budget is about $6.5B (https://www.harvardmagazine.com/2024/10/financial-report-fis...). A $400M shortfall is thus about 6% of their annual budget. Significant, but also something they could probably cover for the next decade or two by drawing down their endowment until they adjust.
We don't know unless we fill in the unknown numbers. Knowing that the amount of federal aid being removed is 40% of an estimate of the amount produced by one source (the endowment) isn't enough information to answer the question. The right question is what percentage of their budget this represents.
From what I can tell, Harvard's actual annual budget is about $6.5B (https://www.harvardmagazine.com/2024/10/financial-report-fis...). A $400M shortfall is thus about 6% of their annual budget. Significant, but also something they could probably cover for the next decade or two by drawing down their endowment until they adjust.