University of California Sells $2 Billion in Bonds Amid Tightening Scrutiny from Trump

The University of California has issued nearly $2 billion in general revenue bonds in the municipal market, as President Donald Trump intensifies pressure on major US universities.

According to bond documents, the University of California Board of Regents is closely monitoring federal government actions affecting higher education institutions, particularly the UC system, as political scrutiny of universities escalates.

The university said proceeds from the offering will be used to finance or refinance various projects across its campuses.

The latest sale follows a $2.2 billion municipal bond issuance completed by the university in December 2025, underscoring its continued reliance on debt markets to support capital needs.

UC officials said Wednesday’s transaction was part of its routine issuance process. The preliminary official statement was released earlier this month, and pricing began Tuesday, prior to the filing of a related lawsuit.

Last year, Trump attempted to freeze hundreds of millions of dollars in federal funding allocated to the University of California, Los Angeles, citing pro-Palestinian protests on campus. A subsequent court ruling ordered that the funds be restored.

More broadly, the administration has sought to suspend federal funding and launch investigations into several universities over pro-Palestinian demonstrations related to Israel’s war in Gaza, as well as policies concerning transgender rights, climate initiatives, and diversity programs.

The moves have raised concerns within academic circles about academic freedom, freedom of expression, and due process protections.

The University of California system receives more than $17 billion annually in federal support, making it particularly exposed to shifts in Washington’s funding posture.

Despite legal obstacles to freezing university funding, institutions across the country have been preparing contingency plans to manage financial uncertainty tied to potential federal actions.

Harvard University has said it plans to issue hundreds of millions of dollars in taxable bonds, reflecting a broader trend among universities seeking to bolster liquidity amid policy risks.

The bond sale highlights how leading US universities are turning to capital markets while navigating an increasingly complex political and financial landscape.