Boston wants Harvard and other elite colleges to pay millions more to help fund city services, just as the Trump administration slashes federal support and ramps up pressure on higher education institutions.
Key Facts:
- Boston is urging Harvard, BU, BC, and Northeastern to increase cash contributions in lieu of property taxes.
- Harvard owns hundreds of tax-exempt acres worth roughly $4 billion in Boston’s Allston area.
- President Trump has frozen $2.6 billion in Harvard funding and banned the enrollment of new foreign students.
- Mayor Michelle Wu seeks long-term deals and revised payment formulas that include designated funding for housing.
- University leaders argue the timing is bad due to severe federal budget cuts and restrictions from the Trump administration.
The Rest of The Story:
Boston’s decades-old program to collect voluntary contributions from tax-exempt universities is under review.
The city wants more money, longer commitments, and better targeting of funds—especially from its wealthiest institutions.
Last year, Harvard and three other major schools paid less than half of what the city requested.
But these universities now face extraordinary pressure from Washington.
President Trump’s administration has frozen billions in grants, blocked new federal funding, and proposed capping foreign student enrollment.
Harvard has felt the brunt of it.
“It’s a very difficult time for this sector,” Mayor Wu acknowledged, even as she pressed for higher contributions.
Harvard is cutting costs, freezing hiring, and tapping into reserves.
Its president has gone to alumni for help plugging funding holes.
City officials say they value the schools’ presence but believe it’s time for a more equitable deal.
Commentary:
It’s about time cities like Boston started calling out these elite institutions.
Harvard sits on a $50 billion endowment, owns prime real estate, and pays just a fraction of what a private landowner would.
Meanwhile, working families and small businesses pay full property taxes to keep city services running.
For decades, schools like Harvard have ridden a tax-exempt gravy train—collecting billions from federal and state programs while contributing relatively little to the local tax base.
And even now, with city budgets under stress and office real estate values dropping, these universities act as if they should be shielded from financial reality.
The Trump administration’s moves might seem aggressive to some, but they’ve exposed how bloated and politically unaccountable these institutions have become.
If Harvard wants to operate like a corporate empire—owning land, running billion-dollar portfolios—it should pay like one.
It’s also revealing that Harvard is being squeezed from both directions: the federal government slashing aid and the city demanding local payment.
Ironically, for a school that likes to talk about equity and fairness, it sure resists paying its share when asked.
The cry of “we’re doing a lot already” rings hollow when their actual contributions are a rounding error in their own budgets.
Boston University hasn’t raised its annual payment since 2019.
Northeastern is stuck at $1.9 million a year.
These are institutions that advertise global reach and massive research budgets.
And yet, while pausing merit pay and freezing hiring, they still spend on glossy marketing and international outreach.
The hypocrisy is glaring.
At some point, these schools must face the truth: they aren’t above the rest of us.
They benefit from police protection, road maintenance, and other public services just like everyone else.
It’s time they paid like everyone else too.
The Bottom Line:
Boston is demanding that elite universities like Harvard contribute more to the city budget, even as these schools face major federal funding cuts under the Trump administration.
The clash highlights long-standing frustrations over tax-exempt status and community contributions.
With both city hall and Washington applying pressure, Harvard and its peers may finally have to open their wallets wider.
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