Harvard University reported a $112.6 million net operating deficit for fiscal 2025, its first shortfall since the pandemic and the largest since 2011. The university attributed the decline in part to abrupt reductions in federal research support after high‑profile disputes with the administration and the freezing of grant reimbursements. Harvard’s assets nonetheless grew to $82.4 billion, buoyed by donations and investment returns, but leadership warned the federal actions had an immediate cash‑flow impact and complicated budget planning. The episode highlights how political disputes with the federal government can translate into measurable financial stress for research‑intensive institutions and may prompt other universities to reassess contingency planning for sponsored research revenue.