Princeton Weighs $320 Million Bond Sale as Agencies Freeze Funds

The bonds are expected to be issued during the week of April 14 and will be structured in an index-eligible, five-year maturity, according to the filing. While the notice doesn’t mention uncertainty in federal support, the deal will raise money for general purposes as the school faces a potential decline in government aid.

A spokesperson for the school did not immediately respond to a request for comment.

Municipal bond sales for higher education are roughly 40% higher so far in 2025 compared to the same period a year earlier, according to data compiled by Bloomberg. Other top schools like the University of Pennsylvania and Stanford University have tapped debt markets as tax and funding risks loom in the background.

The Princeton filing comes the same day as the Ivy League school said US government agencies have suspended dozens of its research grants. Princeton, a science powerhouse where faculty have won Nobel Prizes in physics and chemistry in recent years, was on a list of 60 colleges that the Education Department warned in March could face penalties pending investigations into their handling of allegations of antisemitism.

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Other elite universities have also had their funds investigated or pulled. On Monday, the Trump administration said it would review about $9 billion of contracts and grants to Harvard University and in March it froze $400 million in funding at Columbia University.

Elite schools sometimes choose to sell taxable debt, rather than tax-exempt bonds, to have more flexibility over use of the funds. There are Internal Revenue Service rules on the types of expenditures that can be funded with bond proceeds.

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Princeton has top-tier credit ratings, bolstered by its more than $30 billion endowment and strong brand.

“Princeton’s exceptional strategic positioning is further supported by a strong culture of philanthropy, with three-year average gifts per student of almost $46,000, and superior student demand,” analysts at Moody’s Ratings said in a February 2024 report.

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The upcoming transaction will be managed by Bank of America Corp. and TD Securities, the filing said.