Trump administration unlawfully cut Harvard’s funding, US judge rules

Harvard litigated the grant funding case alongside the school’s faculty chapter of the American Association of University Professors. (AFP)
Harvard litigated the grant funding case alongside the school’s faculty chapter of the American Association of University Professors. (AFP)
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Updated 04 September 2025

Trump administration unlawfully cut Harvard’s funding, US judge rules

Trump administration unlawfully cut Harvard’s funding, US judge rules
  • US judge rules that Trump’s actions violated Harvard’s free-speech rights

BOSTON: A federal judge on Wednesday ruled that US President Donald Trump’s administration unlawfully terminated about $2.2 billion in grants awarded to Harvard University and can no longer cut off research funding to the prestigious Ivy League school. The decision by US District Judge Allison Burroughs in Boston marked a major legal victory for Harvard as it seeks to cut a deal that could bring an end to the White House’s multi-front conflict with the nation’s oldest and richest university.
The Cambridge, Massachusetts-based school became a central focus of the administration’s broad campaign to leverage federal funding to force change at US universities, which Trump says are gripped by antisemitic and “radical left” ideologies.
Among the earliest actions the administration took against Harvard was to cancel hundreds of grants awarded to university researchers on the grounds that the school failed to do enough to address harassment of Jewish students on its campus.
Harvard sued, arguing the Trump administration was retaliating against it in violation of its free-speech rights after it refused to meet officials’ demands that it cede control over who it hires and who it teaches.
Burroughs, an appointee of Democratic President Barack Obama, said the Republican president was right to combat antisemitism and that Harvard was “wrong to tolerate hateful behavior as long as it did.”
But she said fighting antisemitism was not the administration’s true aim and that officials wanted to pressure Harvard to accede to its demands in violation of its free-speech rights under the US Constitution’s First Amendment.
Burroughs said it was the job of courts to safeguard academic freedom and “ensure that important research is not improperly subjected to arbitrary and procedurally infirm grant terminations, even if doing so risks the wrath of a government committed to its agenda no matter the cost.”
She barred the administration from terminating or freezing any additional federal funding to Harvard and blocked it from continuing to withhold payment on existing grants or refusing to award new funding to the school in the future.
White House spokesperson Liz Huston in a statement called Burroughs an “activist Obama-appointed judge” and said Harvard “does not have a constitutional right to taxpayer dollars and remains ineligible for grants in the future.”
“We will immediately move to appeal this egregious decision, and we are confident we will ultimately prevail in our efforts to hold Harvard accountable,” she said.
Harvard did not respond to requests for comment.
The decision came a week after Trump during an August 26 cabinet meeting renewed his call for Harvard to settle with the administration and pay “nothing less than $500 million,” saying the school had “been very bad.” Three other Ivy League schools have made deals with the administration, including Columbia University, which in July agreed to pay $220 million to restore federal research money that had been denied because of allegations the university allowed antisemitism to fester on campus.
As with Columbia, the Trump administration took actions against Harvard related to the pro-Palestinian protest movement that roiled its campus and other universities in the wake of the October 7, 2023, Hamas attack on Israel and Israel’s war in Gaza. Harvard has said it has taken steps to ensure its campus is welcoming to Jewish and Israeli students, who it acknowledges experienced “vicious and reprehensible” treatment following the onset of Israel’s war in Gaza. The administration’s decision to cancel grants was one of many actions it has taken against Harvard. It has also sought to bar international students from attending the school; threatened Harvard’s accreditation status; and opened the door to cutting off more funds by finding it violated federal civil rights law. Burroughs in a separate case has already barred the administration from halting Harvard’s ability to host international students, who comprise about a quarter of the school’s student body.
Harvard litigated the grant funding case alongside the school’s faculty chapter of the American Association of University Professors, which has voiced opposition to the idea of the institution cutting a deal with Trump.
“We hope this decision makes clear to Harvard’s administration that bargaining the Harvard community’s rights in a compromise with the government is unacceptable,” the group’s lawyers, Joseph Sellers and Corey Stoughton, said in a statement.


Musk could become history’s first trillionaire as Tesla shareholders approve giant pay package

Musk could become history’s first trillionaire as Tesla shareholders approve giant pay package
Updated 07 November 2025

Musk could become history’s first trillionaire as Tesla shareholders approve giant pay package

Musk could become history’s first trillionaire as Tesla shareholders approve giant pay package
  • Vote comes Tesla car sales continue to plunge in Europe, including a 50% collapse in Germany
  • Many Tesla investors still consider Musk as a sort of miracle man capable of stunning business feats
  • Critics say Tesla board was too beholden to Musk, his behavior too reckless lately and the riches offered too much

NEW YORK: The world’s richest man was just handed a chance to become history’s first trillionaire.

Elon Musk won a shareholder vote on Thursday that would give the Tesla CEO stock worth $1 trillion if he hits certain performance targets over the next decade. The vote followed weeks of debate over his management record at the electric car maker and whether anyone deserved such unprecedented pay, drawing heated commentary from small investors to giant pension funds and even the pope.

In the end, more than 75% of voters approved the plan as shareholders gathered in Austin, Texas, for their annual meeting.

“Fantastic group of shareholders,” Musk said after the final vote was tallied, adding “Hang on to your Tesla stock.”

The vote is a resounding victory for Musk showing investors still have faith in him as Tesla struggles with plunging sales, market share and profits in no small part due to Musk himself. Car buyers fled the company this year as he has ventured into politics both in the US and Europe, and trafficked in conspiracy theories.

The vote came just three days after a report from Europe showing Tesla car sales plunged again last month, including a 50% collapse in Germany.

Still, many Tesla investors consider Musk as a sort of miracle man capable of stunning business feats, such as when he pulled Tesla from the brink of bankruptcy a half-dozen years ago to turn it into one of the world’s most valuable companies.

The vote clears a path for Musk to become a trillionaire by granting him new shares, but it won’t be easy. The board of directors that designed the pay package require him to hit several ambitious financial and operational targets, including increasing the value of the company on the stock market nearly six times its current level.

Musk also has to deliver 20 million Tesla electric vehicles to the market over 10 years amid new, stiff competition, more than double the number since the founding of the company. He also has to deploy 1 million of his human-like robots that he has promised will transform work and home — he calls it a “robot army” — from zero today.

Musk could add billions to his wealth in a few years by partly delivering these goals, according to various intermediate steps that will hand him newly created stock in the company as he nears the ultimate targets.

That could help him eventually top what is now considered America’s all-time richest man, John D. Rockefeller. The railroad titan is estimated by Guinness World Records to have been worth $630 billion, in current dollars, at his peak wealth more than 110 years ago. Musk is worth $493 billion, as estimated by Forbes magazine.

Musk’s win came despite opposition from several large funds, including CalPERS, the biggest US public pension, and Norway’s sovereign wealth fund. Two corporate watchdogs, Institutional Shareholder Services and Glass Lewis, also blasted the package, which so angered Musk he took to calling them “corporate terrorists” at a recent investor meeting.

Critics argued that the board of directors was too beholden to Musk, his behavior too reckless lately and the riches offered too much.

“He has hundreds of billions of dollars already in the company and to say that he won’t stay without a trillion is ridiculous,” said Sam Abuelsamid, an analyst at research firm Telemetry who has been covering Tesla for nearly two decades. “It’s absurd that shareholders think he is worth this much.”

Supporters said that Musk needed to be incentivized to focus on the company as he works to transform it into an AI powerhouse using software to operate hundreds of thousands of self-driving Tesla cars — many without steering wheels — and Tesla robots deployed in offices, factories and homes doing many tasks now handled by humans.

“This AI chapter needs one person to lead it and that’s Musk,” said financial analyst Dan Ives of Wedbush Securities. “It’s a huge win for shareholders.”

Investors voting for the pay had to consider not only this Musk promise of a bold, new tomorrow, but whether he could ruin things today: He had threatened to walk away from the company, which investors feared would tank the stock.

Tesla shares, already up 80% in the past year, rose on news of the vote in after-hours trading but then flattened basically unchanged to $445.44.

For his part, Musk says the vote wasn’t really about the money but getting a higher Tesla stake — it will double to nearly 30% — so he could have more power over the company. He said that was a pressing concern given Tesla’s future “robot army” that he suggested he didn’t trust anyone else to control given the possible danger to humanity.

Other issues up for a vote at the annual meeting turned out wins for Musk, too.

Shareholders approved allowing Tesla to invest in one of Musk’s other ventures, xAI. They also shot down a proposal to make it easier for shareholders to sue the company by lowering the size of ownership needed to file. The current rule requires at least a 3% stake.