Cambridge's Harvard Square braces for Trump's war on higher ed
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Taxes, tourism, tariffs and Trump are keeping Harvard Square business owners up at night. Photo: Mike Deehan/Axios
Harvard Square businesses are preparing for the worst as the namesake university, the economic engine of the area, faces unprecedented financial threats from the federal government.
Why it matters: As the state's fifth-largest employer, the Harvard consumer community of students, family, faculty and staff is crucial to sustaining retail, restaurants and other small businesses near campus.
- Tough finances at Harvard mean fewer salaries for Cambridge residents — and leaner times for the restaurants and shops that cater to them.
Catch up quick: The Trump administration froze $2.2 billion in federal funds when the school rejected a list of demands related to free speech regulations and antisemitism on campus.
- The White House's war on Harvard escalated, with threats from Trump to end the university's tax-exempt status and demand tax payments on the school's $2.5 billion annual return from its $53.2 billion endowment.
- Harvard and neighboring MIT froze hiring in March, and community leaders worry the attacks on higher education could have a huge impact on spending, staff and local businesses.
What they're saying: "The reality is, if it negatively impacts Harvard with the amount of staff that they have, with the amount of students that they have, it is for sure, without a question, going to negatively impact us," Michael Chapman, general manager at Mr. Bartley's Burger Cottage on Mass. Ave, told Axios.
- The iconic 65-year-old hamburger spot is in the heart of Harvard Square's busiest area for sightseeing and foot traffic, right across from Wigglesworth Hall and the Lamont Library.
The university's financial future is a looming concern, but a more pressing threat for businesses is the expected downturn in international tourism.
- "If our policies are not friendly to these groups of people who we count on to create a vibrant and jam-packed Harvard Square, if those policies are not welcoming, we will feel the impact," Harvard Square Business Association executive director Denise Jillson told Axios.
- The business association estimates that the square welcomes over 8 million visitors every year, including many international tourists.
- China, Canada and other countries have issued travel advisories warning about the risks of visiting the U.S. amid heightened immigration and trade tensions.
- "We usually see a lot of Canadian tourism, which we will not get for God knows how long," Grendel's Den owner Kari Kuelzer said.
Kuelzer says that if the area has to turn away from students, tourists and frugal staff toward billionaires and wealthy patrons, restaurants like Grendel's won't survive.
- "We serve future billionaires, the ones who are developing that killer app, or that major medical breakthrough. Those are our customers," Kuelzer said.
What's next: Harvard Square is gearing up to celebrate its 400th birthday in 2030. Business leaders say they'll navigate the current economic headwinds no matter what the university goes through.
