By Kanishka Singh
WASHINGTON, Feb 25 (Reuters) – The University of California sold about $2 billion worth of general revenue bonds in the municipal market on Wednesday while U.S. President Donald Trump attempts a crackdown on the educational institution and other top schools.
“The Regents (of the University of California) continue to monitor the federal government’s actions with respect to the higher education sector and, in particular, the university,” a bond document said. It added that the university would use the proceeds from the sale to finance or refinance its projects.
The university system sold $2.2 billion of municipal bonds in December.
Last year, Trump tried to freeze hundreds of millions of dollars in federal funds for the University of California, Los Angeles, which is part of the UC system, over pro-Palestinian protests, but a judge later directed that those be restored.
On Tuesday, the Trump administration sued the University of California system, alleging discrimination against Jewish and Israeli employees at UCLA. The university says it has taken steps to combat discrimination.
Trump has attempted to freeze federal funding and initiated probes against universities over pro-Palestinian protests against Israel’s assault on Gaza, transgender policies, climate programs and diversity initiatives, leading to concerns about academic freedom, free speech and due process.
While Trump’s attempts to freeze funds for U.S. universities have faced legal obstacles, schools have been preparing plans to deal with the uncertainty from such threats by the government. Last year, Harvard said it intended to issue hundreds of millions of dollars of taxable bonds.
The University of California said Wednesday’s bond sale was a part of its regular issuance process. The offering document was posted this month and the retail pricing process began on Tuesday before the federal lawsuit was filed, the university system added.
The University of California system receives more than $17 billion a year in federal support.
Trump has cast pro-Palestinian protests as antisemitic. Protesters, including some Jewish groups, say the government wrongly conflates their criticism of Israel’s assault on Gaza and its occupation of Palestinian territories with antisemitism and their advocacy for Palestinian rights with support for extremism.
JPMorgan Chase and Siebert Williams Shank led the transaction for the Regents of the University of California.
(Reporting by Kanishka Singh in Washington; Editing by Thomas Derpinghaus)
Comments