Columbia University reported a 63% drop in its operating surplus, falling to $112.6 million in fiscal 2025 after the federal government terminated hundreds of grants earlier this year. Anne Sullivan, the university’s EVP for finance, called the grant cancellations "destabilizing," and Columbia has since laid off nearly 180 staff tied to federally funded projects. The university created an internal Research Stabilization Fund and issued roughly 500 internal grants to preserve projects while negotiating with the Department of Justice and other federal agencies. Columbia agreed to a settlement after the probe that includes a $200 million payment spread over three years and a $21 million claims fund—commitments that will shape the university’s research budgeting going forward. Financial pressures came from both rising operating costs and grant volatility; operating revenues rose slightly while expenses grew faster. "Operating surplus" here refers to revenue remaining after routine operating expenses—an important proxy for a university’s capacity to fund research and mission priorities without dipping into endowment or reserves.