Universities reported massive legal settlements in 2025 that will shave operating reserves and strain budgets, the industry insurer United Educators found. Notable resolutions include a $750 million settlement tied to abuse cases involving Columbia University and NewYork‑Presbyterian, and dozens more settlements nationwide covering cybersecurity, antitrust, and pandemic‑era disputes. The report highlights exposure across public and private campuses and signals higher insurance and risk‑management costs ahead. Compounding legal pressure, analysts and finance commentators warn that policy shifts and funding uncertainty under the current administration are complicating institutions’ financial planning. Colleges are revising budgets, pausing hires, and weighing program cuts as federal policy flux and rising liabilities converge.