A Vermont college can now dip into tens of millions of restricted endowment funds to help operate the college, per a judge’s order earlier this month.
Saint Michael’s College in Colchester, a private Catholic college, now has access to up to $30 million across 41 funds.
The judge’s decision comes after the college’s accreditor, New England Commission of Higher Education, issued a notice warning that it was “in danger” of not meeting its institutional resources due to declining enrollment.
Similar letters were sent to Massachusetts institutions, including Anna Maria College and Hampshire College, both of which announced abrupt closures in April.
Touching donor-restricted funds is often something an institution does if it is financially “desperate,” Larry Ladd, who was the director of budget and financial planning at Harvard University, previously told MassLive.
In Massachusetts, in 2025, Anna Maria administrators used restricted money to sustain the college, using $2.36 million in restricted endowment funds for operating expenses rather than their intended donor-designated purposes, according to an audited financial report.
Saint Michael’s president Richard Plumb wrote in a court filing that the college faced a “serious and credible risk of being forced to cease operations” without access to the funds, according to Vermont Public, which first reported the news.
The college’s endowment has dropped to $9.8 million as of June, and enrollment has fallen from 1,539 in Fall 2019 to 1,021 in Fall 2025, according to the accreditor’s notice.
The college asked for an expedited ruling on July 23, and Judge Gregory Glennon ruled on Aug. 3, the outlet said.
A Saint Michael’s spokesperson said the college is still fully accredited and its day-to-day student experience, such as academic programs or student services, isn’t affected.
Since implementing a multi-year transformation plan over the past two and a half years, the spokesperson said the college has seen the most successful fundraising year in a decade, stabilized enrollment and reduced its recorded deficit.
The spokesperson said the judge’s approved modification allows for temporary financial flexibility as the college works through its transformation plan. All funds will continue to exist but will have some amount of money drawn from them.
“The Court’s approval of the petition provides an important strategic tool that supports work already underway. It is not a change in direction, nor is it a substitute for continued financial discipline, sound enrollment management, philanthropy and operational improvement,” the spokesperson said.
The college reached out to representatives of the affected endowment funds, even though the law doesn’t require notification, the spokesperson said. Any unused funds will remain restricted, a college spokesperson said.
Vermont Public reported that affected funds include the E.W. Conlan and Alice F. Conway Memorial Scholarships and the Leavy Family Chair in Chemistry.
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