Columbia University reported a year‑over‑year collapse in operating surplus, with the university’s operating income falling more than 63% in fiscal 2025 as expenses outpaced modest revenue gains. Executive vice president for finance Anne Sullivan cited rising costs and the destabilizing effect of federal grant terminations this year as key drivers. Columbia said federal grant revenue remained essentially flat at $1.3 billion and detailed that the Trump administration’s termination of hundreds of grants earlier in the year and the subsequent settlement with the university strained its research enterprise. Columbia also used unrestricted endowment funds to create a Research Stabilization Fund and issued internal grants to preserve projects. At the same time, another public flagship—Penn State—drew scrutiny after its trustees boosted the president’s base salary roughly 50% amid regional campus closures and staff buyouts. Faculty and staff criticized the raise as tone‑deaf given layoffs and closures on regional campuses. Clarification: operating surplus refers to the difference between operating revenue and expenses in the university’s fiscal year.