Good day all. It’s time to revisit the Kremlin on the Charles, better known as Harvard University. Harvard isn’t doing to well these days. They have the DoJ looking into them for civil rights violations and applications to attend have dropped. Now it looks like they might be starting to have financial problems.
These financial issues have led Harvard to look at borrowing a lot of money. Here are the details from the Washington Free Beacon:
Harvard is going to try to borrow more money, issuing $675 million in tax-exempt bonds with the help of the state of Massachusetts, according to a preliminary official statement dated March 27, 2026.
Tax exempt bonds? I will freely admit that I don’t know how bonds for private entities work, but I was under the impression that they weren’t tax exempt.
The 102-page document, a draft offering document used to help line up buyers for the bonds, offers some hints at how Harvard is coping under intense pressure from the federal government, which says the university has “failed to live up to both the intellectual and civil rights conditions that justify federal investment.”
The Massachusetts Development Finance Agency is controlled by Governor Maura Healey, a Democrat and former captain of the Harvard women’s basketball team; Harvard has already tapped the agency for $1,169,075,000 in bond offerings in 2024 and 2025, and if this offering is completed at the $675 million level, Healey’s helping hand to Harvard via Massachusetts’ municipal bond authority will reach a total of more than $1.8 billion.
This sounds like Govno Maura Healey might be using her office to help her alma mater. I can’t say that she is violating any laws, but it really doesn’t look good. In any case, it looks like parents and high school seniors have figured out that a Harvard degree, in many cases, isn’t worth the parchment it’s printed on and have decided to go to other schools.
“First-year student applications received” by Harvard plunged more than 21 percent to 47,893 for the 2025-2026 academic year from a recent high of 61,221 in 2022-23. Peer institutions such as Yale reported 54,919 applicants this year, Brown 47,937 applicants, and Columbia 61,031 applications. Harvard isn’t releasing its application numbers for students entering in the fall of 2026 until it is required to by the federal government, the Harvard Crimson reported.
I think we know the reason why. Right off the bat, Students who happen to be Jewish are reconsidering Harvard after the last few years of flat out antisemitism. We’re also seeing a number of potential employers looking at what Harvard has been producing in recent years and deciding that they weren’t interested. This is something that will affect the parents and student’s decision making process.
Harvard, which has been complaining it is so financially strapped that potentially life-saving cancer research is endangered, employs 12 vice presidents. The United States of America somehow manages with just one vice president, and MIT somehow survives with a mere seven.
Harvard, and pretty much all schools at all levels are way overstaffed with administration types who don’t actually do anything useful, like actual teaching or research on worthwhile subjects. These administrators are also way overpaid for what they actually do, which is, from what I see, not much.
Harvard says in the preliminary official statement that “various legislative, administrative, and enforcement actions initiated by the federal government and its agencies against the University, some of which allege violations of law,” may have “a material adverse effect on the current and future financial profile and operating performance of the University.” It said the developments involving the federal government may reduce revenue, adversely affect the university’s tax status, or damage “the reputation or business of the University.”
Allow me to translate. Harvard is being investigated for civil rights violations by the DoJ, and also being asked rather pointed questions by Congress. Because of the actions of Harvard’s administration, their tax exempt status is also being looked at. Finally, Washington is also looking at how research funds are being used and saying. Yeah, no. We aren’t going to pay for this garbage any longer.”
Now Harvard does have plans for the money they raise with their bonds. They are planning on construction of a new building for the “Study of Economics.” This was announced by Penny Pritzker, he senior fellow of Harvard’s key governing board, the Harvard Corporation. If you are wondering, yes, she’s part of the Pritzker family and is the sister to that fat turd of a Govno, JB Pritzker, She was tight with Obama and Biden and had positions in both maladministrations.
As a condition of qualifying for the Massachusetts tax-exempt financing, Harvard “agrees that no part of the Project, so long as it is owned or controlled by the Institution, shall be used for any sectarian instruction or as a place of religious worship or in connection with any part of a program of a school or department of divinity for any religious denomination.” This is supposed to be to comply with the First Amendment’s establishment clause, but the language is so sweeping that it probably infringes on the free exercise clause.
It probably does, but I don’t think the Communists running Harvard are to concerned about that.
In a “roadshow” slide presentation that goes with the bond documents, Harvard touts its “endowment valued at $56.9 billion as of June 30, 2025.”
And that begs the question that has been running through my mind since I started working on this post. Why isn’t Harvard tapping into that endowment? Isn’t this just what it’s for?
That endowment is allocated 41 percent to private equity and 31 percent to hedge funds, according to the most recent Harvard Management Company annual report, so one way to look at the situation, since money is at least somewhat fungible (not all the endowment is restricted) is that Harvard is borrowing to invest in private equity and hedge funds.
There is a lot more in the Washington Free Beacon story regarding Harvard’s resources, spending, how their management company isn’t actually performing all that well and other assorted things. Still, Harvard is sitting on over $56 billion dollars, so why are they looking to generate bonds? I don’t know, but this isn’t the first time they’ve done this.
In 2016, 2020, 2024, and 2025, Harvard quickly followed tax-exempt bond offerings with taxable bond offerings. It’s not clear if the university plans to do the same this year. The lead managers for the offering are Goldman Sachs and Morgan Stanley.
Interesting how these all happened at certain interesting periods. 2016? President Trump wins. 2020? The Great Panicdemic of 2020. 2024? President Trump reelected. 2025? The walls are starting to close in on Harvard. Now understand that this is all really high end finance and am by no stretch of the imagination an expert. I do have questions on how a supposedly “Private Entity” can be allowed to sell tax free bonds. I’m sure someone can explain it in the comments.
However, when all is said and done, Harvard is looking at a major structural issue. People are now seeing what that $100K a year degree is generally worth, and these days, it isn’t much. I doubt Harvard is going to close in the next few years, they are way to entrenched. I do think that if enrollments keep dropping, Harvard is going to have to do some serious structural work. Right off the bat, they need go get rid of all the WOKE DEI twerps. Will that happen?
Thatisall
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