Universities Increasingly Tap Endowments

U.S. colleges are withdrawing endowment funds at the fastest rate since 2010: a NACUBO/Commonfund study found an 11% year‑on‑year rise in endowment withdrawals to June 2025, and endowments financed 15.2% of operating expenses (up from 10.9% in 2023). This suggests institutions are using one‑time or quasi‑permanent financial reserves to plug budget gaps caused by federal funding cuts and higher costs. — If sustained, heavier endowment reliance could force program cuts, tuition changes, governance debates over spending rules, and a rethinking of public support for higher education.