Columbia University has used its unrestricted endowment monies to keep its research programs functioning despite months of federal funding disruptions, according to The Columbia Spectator.
In a statement made on October 23, Anne Sullivan, Columbia’s executive vice president for finance, revealed that the institution began spending unrestricted portions of its endowment in fiscal year 2025 and will continue to do so through fiscal year 2026. While the university did not disclose the amount taken, the action represents an unusual financial move for the Ivy League institution.
The remaining $5 billion is classified as board-designated endowment and consists of departmental funds, University funds, and net institutional real estate. These funds are made up of capital that the University received from a number of sources and are intended to function as endowment funds, investing to give income over time. The University has the discretion to spend these monies at any moment.
Columbia University : The federal grant freeze spurred the move.
The unprecedented action came after a series of funding surprises earlier this year. According to The Columbia Spectator, the federal government canceled over $400 million in research grants and contracts for Columbia in March, before suspending all National Institutes of Health (NIH) awards in April.
In July, the institution achieved a $221 million deal with President Donald Trump’s administration, resulting in the return of nearly all blocked grants. Acting University President Claire Shipman informed the University Senate in early October that “almost 99 percent” of the revoked research grants had been reinstated following the settlement.
Stabilize financing for researchers.
To aid academics in bridging the financial gap, Columbia announced in May the establishment of two research stability funds—one established with support from NewYork-Presbyterian Hospital for the Vagelos College of Physicians and Surgeons and another to assist projects across the university.
The funds disbursed more than 500 small grants of up to $100,000 in two rounds, the first in June and the second in September, shortly after the federal settlement. Shipman stated at the time that the awards were designed to serve as a temporary bridge, allowing research teams to complete projects, seek alternative funding, or shift to new fields of inquiry.
According to Sullivan, the funding pool was created through a modest draw on centrally administered unconstrained endowment resources and a reduction in endowment-dependent central administrative spending.
A unique financial step.
Although Columbia has previously faced financial difficulties, tapping into its unlimited endowment is regarded as a last option move. Sullivan called the move as “a rare and multi-faceted decision” with long-term repercussions for the university’s financial viability.
Columbia typically spends approximately 4.5 percent of its $15.9 billion endowment each year, adjusted for inflation. For fiscal year 2025, the payout increased marginally to 4.9 percent.
In addition to the regular dividend, the university’s trustees maintained a supplemental payout initiated during the 2008 financial crisis, when Columbia temporarily increased spending to maintain financial aid and operations. The increased payout for 2025 was 0.55 percent and will continue in 2026, along with a new limited-term payout of 0.5 percent approved to help the university’s stabilization efforts.
Managing Risk and Long-Term Sustainability
According to higher education finance experts, Columbia’s approach mirrors a broader trend among big colleges to balance financial caution with operational necessities.
“Institutions are trying to mitigate risk wherever they can,” Chuck Ambrose, a senior education consultant with Husch Blackwell, told The Columbia Spectator. “They’re using asset management to underwrite operating challenges while maintaining long-term discipline.”
Columbia’s endowment consists of around 6,700 individual funds, the majority of which are restricted by donor intent. About $10.9 billion, or two-thirds of the total, is restricted to donors, while the remaining $5 billion is designated by the board and can be spent more freely.
Even with unfettered cash, Columbia has reaffirmed its commitment to long-term financial stewardship. “Endowments represent a promise by the University to sustain resources over time,” according to the institution’s website. “Columbia has an obligation to future students and faculty to grow and preserve its endowment to maintain the university’s excellence.”
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