Stanford is sticking to legacy admission

Stanford University has confirmed that its fall 2026 admissions policy will continue to take legacy status into account. This is a decision that could impact access to one of Silicon Valley’s most important talent pipelines. Stanford has also ended its Test Options policy and is requesting a SAT or ACT score for the first time since 2021.

According to Stanford Daily, the university is so committed to maintaining its legacy preferences that it has withdrawn from California’s Cal grant program and refrains from state financial aid rather than complying with the law signed by California Gov. Gavin Newsom last fall. The university is committed to replacing the funds with its own money.

This is far beyond Palo Alto. Stanford is a launch pad for countless technology leaders, from the founders of Google, Nvidia, Snap and Netflix to other well-known CEOs and VCSs. With legacy admission intact, Silicon Valley elite kids are undoubtedly maintaining their advantages in accessing networks that power many tech booms.

Returning test requirements may add another wrinkle and may prefer the resources for students to prepare their test. While proponents believe it maintains academic standards, critics argue that for an industry based on meritocratic rhetoric, Stanford’s decision represents a step in the wrong direction.

Last year, Stanford announced its decision to reverse its 2021 decision to remove standardized testing as an application requirement. The university will continue to consider this legacy status over the past week with newly released admission criteria.

Policy becomes even more important given the financial reliance on support from university graduates. Alumni donations are key financial contributors to educational institutions, particularly Ivy League schools. Princeton University, for example, received nearly half of its contributions (46.6%) from graduates in the 2022-2023 grade.

At Stanford University, most donations are directed towards annual donations through the Stanford Fund, which quickly spends money on current operations, financial aid, and other programs. Or more often as a gift for Stanford’s large donations (managed by Stanford Management Company).

Universities rely more heavily on graduate contributions when faced with external financial pressures, and new federal policies aimed at higher education are creating unexpected and unprecedented budget problems for institutions like Stanford.

Stanford last week confirmed with the San Francisco Chronicle that it would permanently fire 363 employees, nearly 2% of the management and technology workforce, by calling it “continuous economic uncertainty” and “expected changes to federal government policies.” These include the most notable rise in donation taxes from 1.4% to 8%, which is included in the Trump administration’s “big beautiful bill” signed into law last month.

That tax increase alone will cost Stanford an estimated $750 million a year.