The Trump administration has escalated its crackdown on Harvard University, imposing fresh restrictions on the prestigious institution’s access to federal funds. The Department of Education has placed Harvard under “heightened cash monitoring” status, citing concerns over the university’s financial position and accusations of civil rights violations.
Harvard will be required to use its own funds to pay out student financial aid packages, with the school later able to seek reimbursement from the government.
The university must post an irrevocable letter of credit to cover potential liabilities and ensure it meets its financial obligations to both students and the Department of Education.
The Trump administration’s move comes after a judicial victory for Harvard in the northeastern United States. A Boston judge had ordered the administration to lift its freeze on approximately $2.6 billion in federal funds for Harvard, stating that Trump’s Department of Education “used antisemitism as a smokescreen for a targeted, ideologically motivated assault on this country’s premier universities.”
Trump officials accuse Harvard of promoting “woke” ideology and failing to protect its Jewish students during pro-Palestinian protests. Harvard denies these claims, saying the federal government is focused on controlling the school’s hiring, admissions, and curriculum.
Despite the restrictions, Harvard has announced that it has begun recovering some frozen funds, including $46 million in research funding from the U.S. Department of Health and Human Services. The university hopes to continue seeing funding restored across all federal agencies
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