Princeton Warns Budget Under Strain From Politics, Soft Returns

Princeton Universitywarned of economic challenges, saying it can no longer rely on high endowment returns at a time when political threats to its finances are increasing.

“We expect that budgetary and operational changes will begin in the coming months and occur over a multiyear period,” Princeton President Christopher Eisgruber said in a letter to the campus on Monday. “Princeton will continue to evolve, but in the future it will more often have to do so through efficiency and substitution rather than addition,” he wrote.

The school, which has a $36.4 billion endowment, will transition away from a “growth” mode ...