The University of California has sold about $2 billion worth of general revenue bonds in the municipal market as tensions rise between the institution and U.S. President Donald Trump.
In a bond document, the Regents of the University of California said they are closely monitoring actions by the federal government affecting the higher education sector and the university in particular. The document stated that proceeds from the bond sale will be used to finance or refinance university projects.
The university system described Wednesday’s bond sale as part of its regular borrowing process. It noted that the offering document was posted earlier this month and retail pricing began on Tuesday, before the federal government filed its latest lawsuit.
In December, the university system also sold $2.2 billion in municipal bonds.
The bond sale comes as the Trump administration intensifies scrutiny of several top universities. On Tuesday, the administration sued the University of California system, alleging discrimination against Jewish and Israeli employees at the University of California, Los Angeles (UCLA). The university has said it has taken steps to combat discrimination.
Last year, President Trump attempted to freeze hundreds of millions of dollars in federal funding for UCLA over pro-Palestinian protests. However, a judge later ordered that the funds be restored.
The University of California system receives more than $17 billion annually in federal support.
President Trump has characterized pro-Palestinian protests as antisemitic. Protesters, including some Jewish groups, argue that criticism of Israel’s actions in Gaza and its policies toward Palestinians is being wrongly labeled as antisemitism.
The administration has also sought to freeze federal funding and launched investigations into universities over protests, transgender policies, climate programs, and diversity initiatives. These actions have raised concerns about academic freedom, free speech, and due process.
Although efforts to freeze university funding have faced legal challenges, many institutions are preparing for possible financial uncertainty. Last year, Harvard University announced plans to issue hundreds of millions of dollars in taxable bonds.
The latest University of California bond transaction was led by JPMorgan Chase and Siebert Williams Shank.
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