Harvard FAS Reserves Fall to $112 Million

Unrestricted funds at Harvard's Faculty of Arts and Sciences dropped sharply from fiscal 2023 to fiscal 2026, even as the school posted a surplus.

Updated on Nov. 6, 2026 in Corporate Finance

Red brick academic building facade with tall windows among bare winter trees on a quiet street, depicting a university campus setting. — Harvard's Faculty of Arts and Sciences reported unrestricted reserves fell to $112 million in fiscal 2026 from $207 million in fiscal 2023, even as the school posted a $31 million surplus. AI Illustration. Upload story photo >

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FAS Chief Financial Officer Julie A. Joncas reported that unrestricted reserves fell from $207 million in fiscal year 2023 to $112 million in fiscal year 2026. The school nonetheless recorded a $31 million surplus in fiscal 2026, reversing an $8 million deficit from fiscal 2025.

Why it matters

Unrestricted funds are not tied to particular purposes, so their decline limits the flexibility the school has to absorb shocks. Reserves played a role in shoring up research funding after last year's federal funding cuts.

FAS revenue totaled roughly $1.8 billion in fiscal 2026, and cost-cutting including hiring freezes reduced expenses by $36 million. Restricted funds grew to $926 million from $896 million in fiscal 2025, while record fundraising of $792 million across the FAS and SEAS was up 71 percent.

The players

Harvard University

Harvard is a private research university in Cambridge, Massachusetts, whose Faculty of Arts and Sciences is its largest academic division.

The details

FAS revenue declined by $18 million after accounting for reinstated federal funding, and the school moved to steadier footing through budget cuts and a large-scale staff restructuring. Joncas presented the figures at a faculty meeting on Tuesday, with fundraising increasing partly due to Hoekstra's donor discussions.

Fiscal year 2023: unrestricted funds stood at $207 million.
Fiscal year 2025: FAS recorded an $8 million deficit.
Fiscal year 2026: unrestricted funds fell to $112 million and a $31 million surplus was recorded.
Tuesday: Joncas reported the figures at a faculty meeting.

Market Dynamics

The reserve drawdown reflects Harvard's response to federal funding cuts, with unrestricted reserves used to protect research funding. The school's reliance on fundraising, which rose 71 percent, marks a shift toward private donors to offset public funding losses.

For donors and stakeholders, the figures show that unrestricted gifts, which are not tied to specific purposes, have become more important as reserves shrink. Gifts under $10,000 make up 95 percent of yearly unrestricted donations, and that base has declined over the past decade or two.

The takeaway

Harvard's reserve figures show that a surplus can coexist with a shrinking cushion of unrestricted funds. Readers tracking university finances should watch how the school rebuilds reserves toward its target of roughly $175 million.