Brown University took out its second multi-million-dollar loan four months after the Trump administration pulled $510 million in federal grants from the school for allegedly continuing to use illegal diversity, equity and inclusion (DEI) tactics and failing to address antisemitism on campus.
The Ivy League university took out an additional $500 million loan in July from an unidentified provider, documents show. Brown first took out a $300 million loan shortly after the administration announced the funding freeze in April.
“On July 16, Brown University entered into a $500 million term loan directly with a financial lender,” a Brown spokesman told the Daily Caller News Foundation. “Given recent volatility in capital markets and uncertainty related to evolving federal policy related to higher education, research and other important priorities of Brown, the University is fortunate to have a number of sources of liquidity, including commercial paper programs, bank lines and the private and public debt markets, that are available to help Brown manage its finances and priorities.”
Despite the Supreme Court’s 2023 ruling banning affirmative action policies, Brown announced in December 2024 that it would use “targeted communications campaigns” and place recruitment officers nationwide to focus on the “matriculation and retention of a diverse community of students” to skirt the decision. Asian enrollment at Brown had increased from 29% to 33% for the 2024-2025 academic year compared to the fall of 2023, thanks to the Court’s ruling.
“Brown remains committed to complying with the law while fostering a diverse and inclusive community as integral to our mission of academic excellence,” the school said in a statement at the time.
The Trump administration warned Brown in February, saying that failure to address antisemitism and protect Jewish students would lead to consequences. Anti-Israel protests at Brown reportedly included a hunger strike, threats towards Jewish students and a building sit-in during which several students were arrested.
Brown signed on to a lawsuit in June brought by Harvard challenging the Trump administration’s funding cuts for universities, claiming the cuts disrupted research. A separate lawsuit filed in April by Brown, other universities and several higher education groups challenged the Department of Energy (DOE) over a new policy capping indirect research funding cost rates.
In July, the House Judiciary Committee subpoenaed Brown University alongside others in its continued investigation into whether Ivy League universities are collectively raising tuition prices. The committee is concerned the universities are coordinating price hikes in violation of antitrust laws “to maximize profit.”
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