Hillsdale President Tells Harvard to Ditch Federal Money After Trump Freezes Billions

Larry Arnn, president of Michigan’s Hillsdale College, isn’t losing sleep over Harvard’s funding crisis—and he thinks Harvard could do just fine without Uncle Sam’s money.

In the wake of President Donald Trump’s decision to freeze over $2 billion in grants to Harvard University, Arnn weighed in on the debate over campus antisemitism and academic freedom. He pointed out that while everyone has free speech rights, academic communities have their own boundaries. Arnn emphasized, "You can't go to physics class and talk about English Lit. Also, you can't spit on people because they're Jews or denounce them... because that breaks down the friendship that is necessary to the partnership of a college."

When it comes to controversial opinions, Arnn believes colleges should encourage open debate—but draw the line at hate. "It's perfectly legitimate to say, 'I don't agree with it.' But to say, ‘Israel took that land, and they don't have a right to it,'—well, that's an academic debate if you can back it up. Shouting, threatening, or blocking access to class crosses the line, and if a college tolerates that, it risks violating the 1964 Civil Rights Act."

Trump’s move to freeze Harvard’s funds—and even threaten its tax-exempt status—came after the school refused to comply with federal demands related to its handling of antisemitism on campus. The saga is just the latest in a string of controversies Harvard is facing as it squares off against the government.

Arnn says the whole situation is a stark reminder of how entangled universities have become with federal money. He notes, "There are thousands of stipulations to receive funding from the Department of Education. The government is everywhere in education now. Harvard might not like certain new requirements, but they’re already navigating a sea of regulations because of all that federal cash."

His advice? "The obvious solution would be, don't take the money from the government, which is what we do." Hillsdale has made a name for itself by refusing federal funds, sticking to private support—and Arnn doesn’t let anyone forget it. He half-joked that maybe Harvard should have the courage of its convictions and give up government funding altogether, especially given its massive endowment. The numbers are eye-popping: the frozen grants would amount to $90,000 per student annually.

Arnn enjoys comparing his college’s storied history—Hillsdale’s ties to the likes of Abraham Lincoln and Frederick Douglass—to Harvard’s own legacy. "If James Madison had come to college here, I’d never shut up about it," he quipped, before recalling Douglass’s two speeches on campus. For Arnn, institutional pride is a competitive sport.

He also referenced past government scrutiny of elite universities, including a Trump administration probe into Princeton over allegations of systemic racism. Quoting Madison, Arnn argued that while American principles are "perfect," living up to them is a constant struggle—and sometimes, the pursuit itself can cause unintended harm.

“My suggestion to Harvard would be to go in the right direction. It’s written in your own history. And you should probably do it with your own resources if you don’t like bureaucrats in Washington telling you what to do,” Arnn said.

Harvard President Alan Garber fired back, insisting the university will "not surrender its independence or relinquish its constitutional rights," and that no government should dictate what private universities teach, who they admit, or who they hire.

If nothing else, this standoff between federal power and institutional autonomy is shaping up to be a case study in what happens when money, ideals, and a whole lot of pride collide on campus.