Billionaire investor Bill Ackman launches a scathing attack on Harvard University’s financial management while endorsing the Trump administration’s decision to freeze billions in federal research grants to the prestigious institution. He supports the Trump administration’s freeze on future federal grants to Harvard. Harvard claims the administration’s demands impose “unprecedented and improper control” over university operations.
Financial Mismanagement Despite Massive Endowment
Bill Ackman, a Harvard alumnus and billionaire investor, has launched a blistering critique of his alma mater’s financial management practices. Despite controlling a massive $53 billion endowment, Harvard faces what Ackman describes as “self-induced gross mismanagement,” leading to financial struggles. The prominent hedge fund manager points to administrative bloat and inefficient investment strategies as primary culprits behind the university’s financial troubles, suggesting the institution has lost its way both financially and in its core educational mission.
The controversy intensified when the Trump administration made the decision to withhold billions in research grants to Harvard, a move that Ackman fully endorses. “It is all self-induced gross mismanagement, and I think that the (Trump) administration is doing precisely the right thing now,” Ackman stated, rejecting Harvard’s complaints about the freeze. The Education Department’s action represents a significant financial challenge to the university, which has come to rely heavily on federal funding for many of its research initiatives.
Ackman Predicts Private Equity Pain for $53 Billion Harvard Fund pic.twitter.com/PpX6SgjSEl
— HedgedIn (@noalpha_allbeta) May 6, 2025
Harvard Fights Back as Tensions Escalate
Harvard has not taken the funding freeze lightly, choosing to sue the federal government over what it characterizes as an overreach of authority. University officials claim the administration’s demands impose “unprecedented and improper control” over university operations and threaten critical research programs. This legal challenge has further inflamed the situation, with Ackman suggesting that Harvard should have negotiated with the Trump administration rather than escalating to litigation. The standoff highlights growing tensions between major universities and federal oversight bodies.
Ackman has specifically called for the removal of Penny Pritzker, a senior fellow at the Harvard Corporation and former Obama administration commerce secretary, whom he blames for mishandling the conflict with the Trump administration. Pritzker has been a senior fellow since July 2022 and played a central role in appointing Claudine Gay as Harvard’s president—another decision Ackman has criticized. The targeting of Pritzker adds a political dimension to the dispute, as she maintains deep ties to Democratic politics and donors.
Bill Ackman on Harvard: the university should have negotiated with the government instead of suing; it should act as a fiduciary with respect to the taxpayers; its problems are real and it should fix them; and it deserves to lose its tax exemption. Thank you, @BillAckman! pic.twitter.com/LpzG8G8cUt
— Ben B@dejo (@BenTelAviv) May 5, 2025
A History of Criticism and Calls for Reform
Ackman’s current criticism of Harvard extends a pattern of confrontation that began in earnest following the university’s response to pro-Palestinian protests after a Hamas attack on Israel. He successfully called for the resignation of then-Harvard President Claudine Gay, who stepped down in January 2024 following controversies over her congressional testimony about antisemitism and plagiarism allegations. This history demonstrates Ackman’s willingness to use his platform and influence to push for change at his alma mater.
Beyond individual leadership issues, Ackman has taken aim at Harvard’s governance structure itself, describing the governing board as insular and lacking proper accountability mechanisms. He argues that the university has transformed into a political advocacy organization rather than focusing on its educational mission. Despite his harsh criticism, Ackman maintains that his goal is to see Harvard succeed, suggesting that the current moment presents an opportunity for meaningful reform at the institution and potentially in higher education more broadly.