Trump administration imposes new restrictions on Harvard over financial concerns

BOSTON: The Trump administration escalated its campaign against Harvard University on Friday (Sep 19), placing new restrictions on the Ivy League school’s access to federal student aid and citing concerns about its financial position.

The US Department of Education said Harvard had been placed on “heightened cash monitoring” status, requiring it to use its own funds to disburse federal student aid before drawing down money from the government.

It is also seeking to have Harvard post a US$36 million letter of credit to guarantee its financial obligations.

CIVIL RIGHTS INVESTIGATION

In a separate letter, the department’s Office of Civil Rights warned Harvard it could face further enforcement action unless it provided additional records for review. The office is investigating whether Harvard is illegally considering race in its admissions process.

Harvard did not immediately respond to a request for comment.

The university, which has a US$53 billion endowment, has never indicated it faced financial crisis. But in recent months it has cut spending and conducted layoffs after President Donald Trump’s administration launched a campaign to tie federal funding to changes at universities he accuses of fostering antisemitism and left-wing ideology.

MULTIBILLION-DOLLAR IMPACT

In July, Harvard said the combined effect of recent federal actions could reach nearly US$1 billion annually. The university has filed lawsuits, and earlier this month a judge ruled the administration had unlawfully terminated more than US$2 billion in research grants.

The Trump administration has been pressing Harvard to settle. During a recent cabinet meeting, Trump said Harvard should pay “nothing less than US$500 million” as it had “been very bad.”