The Trump administration has imposed fresh restrictions on Harvard University’s access to federal funds, intensifying its clash with one of America’s most prestigious institutions.
In a statement Friday, the Department of Education announced that Harvard has been placed under “heightened cash monitoring (HCM) status” due to what it called “growing concerns regarding the university’s financial position.”
The shift means Harvard must first disburse student financial aid from its own accounts before later seeking reimbursement from Washington.
“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 said.
Federal officials also ordered Harvard to post an irrevocable $36 million letter of credit to cover potential liabilities.
Background to the crackdown
The move is the latest escalation in the Trump administration’s battle with academia. Officials have accused Harvard and other elite schools of promoting “woke ideology” while allegedly failing to protect Jewish students during pro-Palestinian protests.
Harvard has strongly denied the claims, arguing that the administration is attempting to interfere in its admissions, hiring, and curriculum decisions.
Earlier this month, a Boston judge sided with Harvard, ruling that the administration improperly froze $2.6 billion in federal funds, calling the freeze an “ideologically motivated assault on this country’s premier universities.”
Harvard’s response
University officials declined to comment directly on the new restrictions. Instead, Harvard announced Friday that 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 school said.
The restrictions mark a significant escalation in the Trump administration’s attempts to reshape higher education, raising fresh questions about the balance between federal oversight and university independence.
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