Stanford sticks with legacy admissions
Stanford University has announced that its admissions policies for fall 2026 will continue to include legacy status preferences. This decision, which also sees the university reinstating standardized test requirements (SAT or ACT) for the first time since 2021, is poised to influence access to one of Silicon Valley’s crucial talent pipelines.
In a commitment to maintaining legacy preferences, Stanford is reportedly withdrawing from California’s Cal Grant program. By forgoing state financial aid, the university aims to bypass compliance with Assembly Bill 1780, legislation signed by California Governor Gavin Newsom that bans legacy admissions. Stanford has stated its intention to replace the lost state funding with its own resources.
Stanford has historically served as a launchpad for numerous tech leaders, including the founders of major companies like Google, Nvidia, Snap, and Netflix, alongside many other prominent CEOs and venture capitalists. With legacy admissions remaining a factor, the children of Silicon Valley’s influential figures may continue to hold an advantage in accessing networks that have driven numerous technological advancements.
The reinstatement of standardized test requirements adds another layer to the admissions process, potentially benefiting students with greater access to test preparation resources. While proponents argue this move upholds academic standards, critics contend that for an industry often championing meritocracy, Stanford’s decisions—reinforcing standardized barriers and potentially perpetuating inequality—represent a step in the wrong direction. Stanford had previously announced its intention to reverse its 2021 decision to eliminate standardized testing as an application requirement, with the continuation of legacy status revealed in recently updated admissions criteria.
These policy shifts occur amid broader financial pressures faced by universities, which often rely significantly on alumni support. Alumni donations are substantial contributors to educational institutions, particularly those in the Ivy League. For instance, Princeton University reported that nearly half of its donations, specifically 46.6%, came from alumni during the 2022-2023 academic year.
At Stanford specifically, donations are channeled through The Stanford Fund, which provides immediate funding for operations and financial aid, or more frequently, into the university’s substantial endowment managed by the Stanford Management Company. The endowment’s annual spending, approximately 5%, accounts for roughly 22% of Stanford’s operating budget.
Universities may become even more dependent on alumni donations when confronting external financial challenges. Recent federal policies targeting higher education have introduced unforeseen budget issues for institutions like Stanford. Just last week, Stanford confirmed to the San Francisco Chronicle that it will permanently lay off 363 employees, constituting nearly 2% of its administrative and technical workforce. University officials cited “ongoing economic uncertainty” and “anticipated changes in federal policy” as reasons for these cuts. A notable federal policy change includes the increase in endowment taxes from 1.4% to 8% as part of the “Big Beautiful Bill,” which is estimated to cost Stanford approximately $750 million annually.
