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US Politics

Federal funding cuts are raising questions about university endowments. Here's what some are worth and how they work

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Summary
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89% Informative

Columbia University is one of the richest universities in the U.S. with a $14.8 billion endowment.

But using these funds to cover federal funding cuts isn't as simple as smashing a piggy bank.

Academic experts and former university officials tell CNBC how endowments work and why some are so large.

It is possible for universities to increase their endowment spending during times of crisis.

Donors can also give their written consent to lift endowment restrictions.

Depleting the endowment could come at the cost of future cash flow, as the university has less to invest.

Congress has proposed increasing an endowment tax that currently only applies to 50 universities.

VR Score

91

Informative language

91

Neutral language

71

Article tone

semi-formal

Language

English

Language complexity

54

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not offensive

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not hateful

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Known propaganda techniques

not detected

Time-value

short-lived

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