Brown University has taken out a $300 million loan to navigate financial uncertainties stemming from potential federal funding cuts and an existing $46 million budget deficit, according to a recent report by The Brown Daily Herald. The loan, secured last Friday from an undisclosed lender, carries a 4.86% interest rate and is set to mature in 2032, as detailed in a regulatory filing dated April 15. This move comes as the Trump administration threatens to freeze $510 million of Brown's federal funding, citing concerns over alleged antisemitism and the university's diversity, equity, and inclusion (DEI) initiatives.
The decision to borrow follows a turbulent period for Brown and other Ivy League institutions, with the administration targeting universities it perceives as failing to address antisemitism or supporting certain activist movements. A White House official informed The Brown Daily Herald that the proposed $510 million freeze would make Brown the fifth Ivy League school to face such cuts, following Columbia University's $400 million funding reduction in March. Brown's federal funding, which accounts for 19% of its operating revenue (over $253 million in 2024, projected to reach $300 million in 2025), is critical for research and operations. The potential loss of these funds, combined with a $46 million structural deficit, has prompted the university to seek additional liquidity.
