PROVIDENCE – Brown University’s operating budget received a massive infusion of $352 million thanks to investment returns generated by the school’s endowment.
The contribution, called “an all-time high” in the university's news release, will be used in support of student financial aid, research and professorships.
“We often see a misunderstanding that universities don’t spend funds from endowments, but they fund activities that happen every day at Brown,” said Brian Clark, vice president for News and Strategic Campus Communications at Brown University. The endowment contributions are approximately a quarter of the school’s annual revenue, he said.
The endowment generated an 11.9% investment return during fiscal year 2025, which closed on June 30, 2025, and its total market value increased from $7.2 billion to $8 billion. The result is $853 million in investment gains, $133 million in new endowed gifts, the receipt of $200 million from Brown University Health in addition to the $352 million budget contribution.
This represents nearly $36,000 per student and 23% of Brown’s total revenue. The largest share of 35% of the endowment’s annual budget contributions goes toward scholarships, fellowships and prizes. Among current Brown undergraduates, 48% of students receive need-based financial aid with an average aid package of $68,458, which covers approximately 71% of the standard cost of attendance.
Earlier this week, Brown University
declined the policy “compact” from the White House, which would have secured greater federal funding.
Data compiled by Cambridge Associates suggest that Brown's investment outcomes have been exceptional over five- and 10-year terms, with their investment returns falling in the top 5% of peer results.
“The role [of the Investment Office] is not to maximize returns every single year but make sure it is an enduring resource over the long term,” said Clark.
At 25%, FY25 shows the greatest yearly increase in the endowment contribution over the last 10 years, with only FY23 coming close at 24%.
Among nearly 4,000 individual endowed funds that comprise the Brown endowment are funds that support financial aid to allow students to graduate debt-free; professorships to recruit leading researchers and educators; biomedical laboratories to help develop treatments for diseases ranging from Alzheimer's to ALS to cancer.
“We do expect that we will see reduced federal funding for research in the months ahead,” said Clark. “So while contributions from our endowment can’t make up for the differences we might see, they will play a vital role in supporting our budgets.”
(MINOR edits to tighten.)
