Are universities running down their endowments?

US university endowments have recorded their fastest spending growth since the global financial crisis as federal funding cuts and rising operating costs squeeze campus budgets.

A study of 657 institutions by the National Association of College and University Business Officers (Nacubo) with Commonfund showed their endowment withdrawals rose 11 per cent year on year in the 12 months to June 2025 — the sharpest increase since 2010.

The surge came as endowments funded an average of 15.2 per cent of universities’ operating expenses last year, up from 10.9 per cent in 2023.

Here is more from Sun Yu at the FT.