In December 2025, Cornell University announced a $55 million gift from alumnus Stephen B. Ashley to endow the newly named Ashley School of Global Development and the Environment. The university presented the donation as a transformative investment in sustainability, global development, and interdisciplinary research. Yet behind the headlines of generosity lies a pattern that has come to define elite higher education: the use of philanthropy to launder reputations and sanitize wealth accumulated through systems that produce widespread harm.
Ashley’s career exemplifies this dynamic. As a longtime real estate investor and head of The Ashley Companies, he amassed significant wealth. His tenure on the board of Fannie Mae, including as chairman in the mid-2000s, coincided with periods of accounting irregularities, risky mortgage practices, and systemic failures in governance. Fannie Mae’s collapse during the 2008 financial crisis devastated millions of Americans, particularly low-income and minority households, yet board members and executives largely escaped personal consequences. Ashley’s wealth, in part derived from this environment, is now being funneled into a university named for him — transforming historical responsibility into a narrative of generosity.
The pattern extends beyond domestic finance. Ashley also serves on the Founders Council of the Middle East Investment Initiative (MEII), a nonprofit focused on private-sector development in the Middle East. While MEII frames itself as a promoter of economic growth and development, critics argue that such organizations operate within a global financial ecosystem that prioritizes investor stability and elite networks over democratic accountability or local economic agency. Participation in these initiatives may be legal, even philanthropic, but they reinforce Ashley’s image as a global benefactor without confronting the broader systemic power he wields.
Cornell, like many elite institutions, accepts such gifts with minimal scrutiny, emphasizing the moral and intellectual good the donation enables while obscuring the histories of harm that made the wealth possible. Naming a school dedicated to equity, sustainability, and global development after a figure linked to financial crisis and speculative practices exemplifies the reputational laundering function universities serve for wealthy donors. The institution converts fortunes built in high-stakes, opaque, or socially harmful arenas into lasting prestige, moral capital, and scholarly legitimacy — all while reinforcing its own image as an engine of public good.
This is not a question of legality. Ashley’s wealth is largely untarnished in the courts. It is a question of accountability, ethics, and institutional values. By turning wealth into permanent naming rights, universities like Cornell signal that elite power can be absolved through philanthropy, creating a structural dynamic where generosity replaces responsibility, and reputation is more durable than accountability.
For students, faculty, and the public interested in environmental justice, social equity, and global development, the contradiction is stark. The same systems that generate inequality now fund the study and critique of inequality itself. Elite institutions benefit materially and symbolically from the work of those who profited from structural harm, even as the original consequences fade from public memory. Until universities confront this tension, higher education will continue to function as a reputational laundromat for elite wealth, transforming past systemic damage into present prestige.
Sources
Cornell University, “Historic Gift Endows New CALS School,” Cornell News
Cornell Sun, coverage of the Ashley School announcement
Federal Housing Finance Agency, Special Examination Reports on Fannie Mae (2005–2008)
Financial Crisis Inquiry Commission materials on Fannie Mae governance
Reuters, coverage of post-crisis shareholder litigation involving Fannie Mae board leadership
Middle East Investment Initiative, Board and Founders Council listings
Aspen Institute, background on MEII origins
Updated September 3, 2024. UAW 2300 has reached a deal with Cornell University management after the longest strike in the university's history. The deal includes wage increases from 21 percent to 25.5 percent over the four years of the contract, a cost of living adjustment, and the elimination of the two-tier wage system. The agreement also introduces improvements to policies on time off, uniforms, inclement weather, and safety protections. HEI thanks Jimmy Jordan at the Ithaca Voice for his valuable contributions to this story.
This story is not just about Cornell University workers and Cornell University management, but also about Ithaca, New York: a progressive town that faces gentrification and high housing costs for working-class folks who feel the economic squeeze.
Recent Labor Victories Covered By the Higher Education Inquirer
After months of trying to negotiate with Cornell University management, hundreds of UAW Region 9 workers rallied for a fair contract following a 94 percent vote to strike if necessary.
August 18, 2024 (UAW Press Release)
Over 1,000 UAW members
have walked out on strike at Cornell University, as the university has
failed to present a fair package and has not bargained in good faith,
stalling and retaliating against protected union activity by the
workers.
The membership, made up of maintenance and facilities workers, dining
workers, gardeners, custodians, agriculture and horticulture workers
and others, are facing declining real wages even as Cornell’s endowment
has ballooned and tuition revenue has skyrocketed. Over the past four
years, Cornell’s endowment has soared 39% to nearly $10 billion and
tuition has increased 13% – all while workers’ buying power has fallen
5%.
Many of the workers have had to move out of Ithaca to afford housingand must pay expensive parking fees to park on campus. The wage for most
at the university is less than $22 per hour, far lower than what
economists estimate it costs for a family to live in the region. The
compensation for top administrators exceeded $12.4 million in 2022.
“Workers at Cornell are fed up with being exploited and used. The
university would much rather hoard its wealth and power than pay its
workers fairly,” said UAW Local 2300 President Christine Johnson.
“Cornell could have settled this weeks ago. Instead, they’ve scoffed
and laughed at us and broken federal law. We’re done playing around.”
“The workers at Cornell are pushing back against the university’s
arrogance and greed. With a $10 billion endowment, the administration
can more than afford the members’ demands,” said UAW Region 9 Director Daniel Vicente. “Workers in Local 2300 are showing the university that they are willing to do what’s needed to win what they deserve.”
Cornell University workers are the latest UAW members standing up to
billionaire class greed. Thousands of UAW members have won record
contracts in the last year, including auto workers at Daimler Truck, the
Big Three automakers, and Allison Transmission workers in Indianapolis,
IN.
After months of failing to negotiate with workers, and with the new school year closing in, Cornell University administrators asked that a mediator be appointed.
Cornell University workers asked for a 27 percent increase in wages over four years, with a Cost of Living Allowance (COLA). The university offered a 17 percent increase in wages over four years, with no COLA. The university wanted to keep a divisive two-tiered system which gave lower wages to workers who started after 1997. Cornell also wanted employees to continue to pay for parking.
The University appeals to our better natures, to our commitment to
community, to conceal their real ask: to betray these friends and
colleagues, at the moment when they are most in need of our support.
The Cornell leadership of the UAW 2300 chapter, by contrast, has
shown a richer vision of what community needs and what it can be. They
too appeal to our desire to help out, to step up. They have asked for
solidarity, rather than to undermine each other. To not replace
striking labor or the work that they do. To show up on the picket line.
To voice support. To demand that Cornell sign a fair contract. They have
asked us to take the side of those members of our community fighting
for a better life. They have asked us to stand with them.
And in so doing, they are teaching us that real community can only be
forged by a honest appraisal of injustice and unfairness, by a real
understanding of the power that a few employers and institutional
leaders hold over everyone else, and by a real commitment to challenging
it.
According to 14850.com, workers reached a tentative deal with management. 'Over the life of the agreement, members will see an average increase
of 21%-25.4% in hourly wages over the four years, depending on grade
and hire/job rate,' said the UAW on Tuesday night. A sharp increase in
pay to bring wages in line with the actual cost of living in Tompkins
County was one of the union’s key demands."
