This isn't law, its journalism, and frankly the article is well written and asks a good question -- why are these (extremely wealthy) universities finances so brittle?
> Columbia...has an endowment of roughly $15bn. Mr Trump’s administration withheld a mere $400m in federal funding.
With the best investing in the world, that $15bn might throw off 1 billion a year in perpetuity. $400m (a year) is a very serious chunk of the university's budget.
We don't know unless we fill in the unknown numbers. Knowing that the amount of federal aid being removed is 40% of an estimate of the amount produced by one source (the endowment) isn't enough information to answer the question. The right question is what percentage of their budget this represents.
From what I can tell, Harvard's actual annual budget is about $6.5B (https://www.harvardmagazine.com/2024/10/financial-report-fis...). A $400M shortfall is thus about 6% of their annual budget. Significant, but also something they could probably cover for the next decade or two by drawing down their endowment until they adjust.
Yes there is.