Cornell is facing many challenges, particularly the Trump Administration is suspending $1 billion in federal research grants due to alleged antisemitism and improper diversity, equity, and inclusion (DEI) programs.
For the year ending June 30, 2023, Cornell received $157 million in state and federal appropriations, $826.5 million in federal grants, and $70.7 million in state grants. This compares with $307 million in grants from the private sector. Yet, all of these are small parts of Cornell’s $5.9 billion in annual operating expenses.
In response, many people are asking whether Cornell can withstand this challenge by using its endowment to fill the gap. As of March 2025, the endowment was worth $10,332,429,674, which is the 14th largest in the country. However, most experts claim that a better measurement is the endowment per student, and Cornell ranks 71st by that measure.
The NACUBO Commonfund Study of Endowments recently updated their list of endowment per student to reflect fiscal year 2024 data. Here is a list of the eight Ivy League schools, as well as some other peer research universities, all of which have a higher endowment per student than Cornell:
| Institution Name | Fall 2023 Full-time Equivalent (FTE) Enrollment | FY24 Total Endowment Market Value (in $1,000s) | Endowment Per Student ($) |
| Princeton University | 9,079 | 34,052,327 | $3,750,669.32 |
| Yale University | 15,269 | 41,441,700 | $2,714,107.01 |
| Stanford University | 17,623 | 37,631,000 | $2,135,334.51 |
| Harvard University | 24,357 | 51,977,208 | $2,133,974.13 |
| Massachusetts Institute of Technology | 11,777 | 24,572,716 | $2,086,500.47 |
| California Institute of Technology | 2,463 | 4,144,800 | $1,682,825.82 |
| University of Notre Dame | 12,785 | 17,897,379 | $1,399,873.21 |
| Dartmouth College | 6,700 | 8,273,316 | $1,234,823.24 |
| University of Pennsylvania | 25,536 | 22,347,945 | $875,154.50 |
| Duke University | 16,850 | 11,889,994 | $705,637.65 |
| Northwestern University | 20,702 | 14,209,710 | $686,393.10 |
| Brown University | 10,914 | 6,718,785 | $615,611.60 |
| The Johns Hopkins University | 21,993 | 13,063,073 | $593,965.03 |
| The University of Chicago | 17,112 | 10,104,952 | $590,518.45 |
| Columbia University | 30,930 | 14,782,492 | $477,933.79 |
| Cornell University | 27,674 | 10,658,170 | $385,132.98 |
Cornell has been able to maintain its quality despite having much less endowment per student by relying on substantial support from both the New York and federal governments.
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Even if the size of Cornell’s endowment were on a par with other peer universities and there was money to spare, Cornell is legally obligated to invest the money so that it will last in perpetuity. The endowment is made up of over 8,000 separate accounts that are invested in a common set of assets, much like a mutual fund. Cornell can not spend down these assets, and most of these accounts must support a specific purpose designated by the donor of the account.
Here is the breakdown of the set purposes of the Cornell endowment accounts as of FY 2024:
| Academic programs and research | $ 2,916,217,000 | 29.4% |
| Financial aid | $ 2,831,695,000 | 28.5% |
| General purpose and facility support | $ 1,965,488,000 | 19.8% |
| Professorships | $ 2,026,840,000 | 20.4% |
| CU Foundation | $ 185,494,000 | 1.9% |
Cornell also has $1.6 billion in funds that are not legally restricted but have been promised for future projects. So, if the goal was to make up for any frozen federal research grants, most of the endowment is earmarked for other purposes.
Instead of turning to its endowment, Harvard is borrowing $750 million to help it meet its commitments during the current dispute. Cornell could also borrow money, but ultimately, borrowed funds would have to be repaid, perhaps at the expense of future students and future research projects.
Hence, the long-term consequences would be a combination of higher tuition, less generous financial aid, perhaps fewer Ph.D. students, and less competitive salaries. Only time will tell how quickly the Trump Administration will move against other universities while its Task Force is fully engaged with Columbia and Harvard.
For the long term, Cornell’s three missions of teaching, research, and public service will continue. The question will be how Cornell can adapt if the federal government ceases to be a reliable partner in funding research projects. Cornell has invested billions in research facilities and laboratories, but it may not be able to amortize those costs against future federal contracts. Similarly, Cornell has extensive endowments to support graduate student fellowships, but many other students are supported through salaries funded by federal research grants.
Most of Cornell’s funds are controlled by the Board of Trustees working through budget officers in Day Hall and East Hill Plaza. Unrestricted funds, such as tuition, could be redirected to meet emergency needs during any funding suspension. In addition, undergraduates pay a mandatory $424 student activity fee controlled by the Student Assembly. Graduate students pay $110 controlled by the Graduate and Professional Student Assembly. If those bodies sense an emergency, they can redirect those funds to fill the gap created by the suspended research funds. Similarly, many Cornell staff and graduate students pay union dues (about 1.5% of members’ payroll), and the local unions could vote to redirect those funds.
Cornell needs to explain to both the public and Congress that valuable research is being held hostage to address concerns stemming from unrelated parts of a large decentralized institution.
