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A big increase in the tax on university endowments is adding to financial uncertainty for the wealthiest colleges in the U.S., leading several already to lay off staff or implement hiring freezes.Spending more endowment money on taxes could also lead colleges to reduce financial aid, cutting off access to elite institutions for lower-income students, colleges and industry experts have warned. President Donald Trump signed the tax increase into law last month as part of his signature spending bill.The new tax rates take effect in 2026, but colleges such as Harvard, Yale and Stanford already are citing the tax as one of many reasons for making cuts across their universities. Each will be on the hook to pay hundreds of millions more in taxes, while also navigating reductions in research grants and other threats to funding by the Trump administration.A tax on college endowments was introduced during Trump’s first administration, collecting 1.4% of wealthy universities’ investment earnings. The law signed by Trump last month creates a new tiered system that taxes the richest schools at the highest rates.The new tax will charge an 8% rate at schools with $2 million or more in assets for each enrolled student. Schools with $750,000 to $2 million will be charged 4%, and schools with $500,000 to $750,000 will continue to be charged the 1.4% rate.The tax applies only to private colleges and universities with at least 3,000 students, up from the previous cutoff of 500 students.“The tax now will really solely apply to private research universities,” said Steven Bloom, assistant vice president of government relations for the American Council on Education. “It’s going to mean that these schools are going to have to spend more money under the tax, taking it away from what they primarily use their endowment assets for financial aid.” This small group of wealthy colleges faces a tax increase The law will increase the endowment tax for about a dozen universities, according to an Associated Press analysis of data from the National Association of College and University Business Officers.Harvard, Yale, Stanford, Princeton and the Massachusetts Institute of Technology are expected to pay the 8% rate next year. The schools facing the 4% rate include Notre Dame, Dartmouth College, Rice University, University of Pennsylvania, Washington University in St. Louis and Vanderbilt University.Some universities are on the edge of the law’s parameters. Both Duke and Emory, for instance, were shy of the $750,000-per-student endowment threshold based on last fiscal year.Endowments are made up of donations to the college, which are invested to maintain the money over time. Colleges often spend about 5% of their investment earnings every year to put toward their budgets. Much of it goes toward scholarships for students, along with costs such as research or endowed faculty positions.Despite the colleges’ wealth, the tax will drastically impact their budgets, said Phillip Levine, an economist and professor at Wellesley College.“They’re looking for savings wherever possible,” Levine said, which could impact financial aid. “One of the most important things they do with their endowment is lower the cost of education for lower- and middle-income students. The institutions paying the highest tax are also the ones charging these students the least amount of money to attend.”For example, at Rice University in Houston, officials anticipate the college will need to pay $6.4 million more in taxes. That equates to more than 100 student financial aid packages, the university said, but Rice officials will explore all other options to avoid cutting that support. How colleges are adjusting to financial pressures In the meantime, some universities are going forward with staff cuts.Yale University says it will have to pay an estimated $280 million in total endowment taxes, citing the tax in a campus message implementing a hiring freeze. Stanford University announced plans to reduce its operating budget by $140 million this upcoming school year, which included 363 layoffs and an ongoing hiring freeze. The university spent months trying to determine where to reduce its budget, but said it would continue to support undergraduate financial aid and funding for Ph.D. students.Research universities are under increasing financial pressure from reductions in funding from the National Institutes of Health, the National Science Foundation and other federal agencies.No university knows this pressure better than Harvard, the country’s wealthiest college. Its $53 billion endowment puts it at the top of the list for the new tax, but it’s also seeing massive portions of research funding under threat in its ongoing battle with the White House.The federal government has frozen $2.6 billion in Harvard’s research grants in connection with civil rights investigations focused on antisemitism and Harvard’s efforts to promote diversity on campus. But the impact of other administration policies on the university could approach $1 billion annually, Harvard said in a statement.“It’s not like Harvard is going to go from one of the best institutions in the world to just a mediocre institution. That’s probably not going to happen,” Levine said. “But that doesn’t mean it’s not going to be a bad thing that there won’t be pain and that students won’t suffer.” Mumphrey reported from Phoenix. Associated Press writer Sharon Lurye in Philadelphia contributed to this report. The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org. Cheyanne Mumphrey, AP Education Writer
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Want more housing market stories from Lance Lamberts ResiClub in your inbox? Subscribe to the ResiClub newsletter. During the Pandemic Housing Boom, from summer 2020 to spring 2022, the number of active homes for sale in most housing markets plummeted as homebuyer demand quickly absorbed almost everything that came up for sale and sellers had ultimate power. Fast-forward to the current housing market, and the places where active inventory has rebounded to 2019 levels (due to strained affordability suppressing buyer demand) are now the very places where homebuyers have gained the most power. At the end of July 2025, national active housing inventory for sale was still -11% below June 2019 levels. However, more and more regional markets are surpassing that threshold. This list is growing: January 2025: 41 of the 200 largest metro area housing markets were back above pre-pandemic 2019 inventory levels. February 2025: 44 of the 200 largest metro area housing markets were back above pre-pandemic 2019 inventory levels. March 2025: 58 of the 200 largest metro area housing markets were back above pre-pandemic 2019 inventory levels. April 2025: 69 of the 200 largest metro area housing markets were back above pre-pandemic 2019 inventory levels. May 2025: 75 of these 200 major markets were back above pre-pandemic 2019 inventory levels. June: 78 of these 200 major markets were back above pre-pandemic 2019 inventory levels. Now, at the latest reading for the end of July 2025, 80 of the 200 markets are above pre-pandemic 2019 inventory levels and ResiClub expects that count will continue to rise this year. [Chart: ResiClub] Among these 80 markets, youll find lots in Sun Belt markets like Florida, Texas, Arizona, and Colorado. Many of the softest housing markets, where homebuyers have gained leverage, are located in Gulf Coast and Mountain West regions. Some of these areas were among the nations top pandemic boomtowns, having experienced significant home price growth during the pandemic housing boom, which stretched housing fundamentals far beyond local income levels. When pandemic-fueled domestic migration slowed and mortgage rates spiked, markets like Cape Coral, Florida, and San Antonio, Texas, faced challenges as they had to rely on local incomes to sustain frothy home prices. The housing market softening in these areas was further accelerated by the abundance of new home supply in the pipeline across the Sun Belt. Builders in these regions are often willing to reduce net effective prices or make other affordability adjustments to maintain sales. These adjustments in the new construction market also create a cooling effect on the resale market, as some buyers who might have opted for an existing home shift their focus to new homes where deals are still available. In contrast, many Northeast and Midwest markets were less reliant on pandemic migration and have less new home construction in progress. With lower exposure to that demand shock, active inventory in these Midwest and Northeast regions has remained relatively tight, keeping the advantage in the hands of home sellers. !function(){"use strict";window.addEventListener("message",function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data["datawrapper-height"][t]+"px";r.style.height=d}}})}(); Generally speaking, housing markets where inventory (i.e., active listings) has returned to pre-pandemic levels have experienced softer/weaker home price growth (or outright declines) over the past 36 months. Conversely, housing markets where inventory remains far below pre-pandemic levels have, generally speaking, experienced more resilient home price growth over the past 36 months. ResiClub PRO members can find our latest inventory analysis for +800 metros, +3,000 counties, and +25,000 ZIP Codes here, and our latest analysis showing why the 2019 inventory comparison remains insightful here.
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Oil prices edged higher on Friday but were poised for the steepest weekly losses since late June on a tariff-hit economic outlook and a potential meeting between U.S. President Donald Trump and Russian counterpart Vladimir Putin. Brent crude futures were up 52 cents, or 0.78%, at $66.95 a barrel by 1104 GMT. U.S. West Texas Intermediate crude futures rose 43 cents, or 0.67%, to $64.31. Brent was on track to be down 3.9% over the week while WTI was set to finish 4.5% lower than last Friday’s close. Higher U.S. tariffs against a host of trade partners went into effect on Thursday, raising concern over economic activity and demand for crude oil, ANZ Bank analysts said in a note. The latest tariffs arrive against a backdrop of an already weaker than expected U.S. labour market and Thursday’s announcement by the Kremlin that Putin and Trump would meet in the coming days as trade tensions rise between the U.S. and Russia’s oil customers. Trump this week threatened to increase tariffs on India if it kept buying Russian oil, which the market viewed as putting further pressure on Russia to reach a deal with the U.S., said independent analyst Tina Teng. Trump also said China, the largest buyer of Russian crude, could be hit with tariffs similar to those levied against Indian imports. The potential meeting raises expectations of a diplomatic end to the war in Ukraine, which could lead to eased sanctions on Russia, with Russian stocks rallying after the news. “There could be a meeting between Trump and Putin in the near future, which could indicate that Trump is adopting a wait-and-see approach with regard to further sanctions against Russia and its allies,” Commerzbank analysts said in a note. However, some analysts remain cautious. “The Russian leader is expected to insist on having his territorial demands granted, a hard sell for the invaded country, while his U.S. counterpart will push for a ceasefire,” said PVM analyst Tamas Varga. “No breakthrough is anticipated, and the U.S. following through on its threat to impose secondary sanctions on those dealing in Russian energy including China and India remains a possibility.” Robert Harvey, Reuters
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