Journalism of Courage
The Trump administration on Friday placed new restrictions on Harvard University, limiting the Ivy League school’s access to federal funds for student aid, citing concerns over the university’s “financial position,” according to Reuters.
The Department of Education said Harvard, based in Cambridge, Massachusetts, has been placed on “heightened cash monitoring” status. Under this measure, Harvard must use its own funds to disburse federal student aid before drawing down money from the department.
The Education Department also ordered Harvard to post a letter of credit for $36 million to ensure its financial obligations are met. Officials cited the university’s decision to issue bonds and implement layoffs amid ongoing disputes with the White House as reasons for concern.
Trump has intensified scrutiny of universities and threatened to cut federal funding over various issues, including pro-Palestinian protests, transgender policies, climate initiatives, and diversity, equity, and inclusion programs.
The Education Department warned that Harvard could lose access to all federal student aid if it fails to comply with record requests from its Office of Civil Rights. The office is investigating whether Harvard continues to consider race in undergraduate admissions, following the US Supreme Court’s 2023 ruling that struck down affirmative action practices used to boost enrollment of racial minorities.
Earlier this year, the federal government settled investigations with Columbia University, which agreed to pay over $220 million, and Brown University, which will pay $50 million to support local workforce development. Trump has stated, according to Reuters, that any settlement with Harvard should be “nothing less than $500 million.”
The administration also proposed a $1 billion settlement with the University of California, Los Angeles (UCLA), a move Governor Gavin Newsom described as extortion. UCLA said the government had frozen nearly $600 million in funding.
On Friday, UCLA unveiled new protest rules formalizing interim policies introduced in September 2024 after large demonstrations and a violent attack on a pro-Palestinian encampment. The policies restrict unauthorised encampments, ban masks for rule violations, and make certain outdoor spaces off-limits for demonstrations that are not pre-approved.
(With inputs from Reuters)
