Trump Administration Imposes New Funding Restrictions on Harvard

The Trump administration on Friday announced new restrictions on Harvard University’s access to federal funds, escalating its ongoing clash with the Ivy League institution.

In a statement, the U.S. Department of Education said Harvard had been placed on “heightened cash monitoring (HCM) status” due to “growing concerns regarding the university’s financial position.” The department cited civil rights violation accusations leveled by the administration, Harvard’s recent bond issuance, and staff layoffs as factors fueling uncertainty.

Under the new status, Harvard must use its own funds to disburse federal student aid packages before later seeking reimbursement from the government. “Students will continue to have access to federal funding, but Harvard will be required to cover the initial disbursements as a guardrail to ensure Harvard is spending taxpayer funds responsibly,” the department stated.

Federal officials also directed the university to provide “an irrevocable letter of credit for $36 million” to safeguard against potential liabilities and ensure Harvard meets its financial obligations to students and the government.

The move comes after a Boston judge earlier this month ordered the Trump administration to lift a freeze on about $2.6 billion in federal funds for Harvard, ruling that the Department of Education had “used antisemitism as a smokescreen for a targeted, ideologically motivated assault on this country’s premier universities.”

Trump officials have accused Harvard and other institutions of promoting “woke” ideology while failing to adequately protect Jewish students during pro-Palestinian protests. Harvard has rejected those claims, arguing that federal actions amount to interference in its admissions, hiring, and curriculum.

On Friday, Harvard said it had begun recovering some previously frozen funds. “We are pleased to see the disbursement of $46 million in research funding from the U.S. Department of Health and Human Services. This is an initial step, and we hope to continue to see funding restored across all of the federal agencies,” the university announced.

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