The Trump administration has imposed new restrictions on Harvard University, threatening to cut federal funding amid various disputes over the institution’s policies and financial practices. The Education Department is now requiring Harvard to post a letter of credit for $36 million to secure its financial obligations, following concerns regarding the university’s fiscal health and recent decisions such as issuing bonds and conducting layoffs.
In a letter from the Education Department, officials expressed apprehension about Harvard’s financial stability, particularly in light of its ongoing conflict with the White House. The letter indicated that Harvard could risk losing access to federal student aid funding if it fails to comply with requests for records from its Office of Civil Rights. This office is currently reviewing whether Harvard continues to consider race in its undergraduate admissions process, a practice that was deemed unlawful by the US Supreme Court in 2023.
The Education Department’s scrutiny of Harvard comes at a time when President Trump has been vocal about his administration’s crackdown on universities regarding a variety of issues, including pro-Palestinian protests against Israel’s actions in Gaza, transgender policies, and diversity initiatives. Harvard did not respond to requests for comment regarding these developments.
In July, the federal government settled investigations with Columbia University and Brown University. Columbia agreed to pay over $220 million, while Brown committed to support local workforce development with a $50 million payment. Both institutions accepted certain government demands as part of their settlements. The Trump administration is now pursuing a similar settlement with Harvard, with Trump asserting that the university should pay “nothing less than $500 million.”
The government has also proposed settling its investigation into the University of California, Los Angeles (UCLA), suggesting a payment of $1 billion. California Governor Gavin Newsom criticized this proposal as an extortion attempt. UCLA reported in August that nearly $600 million in funding had been frozen by the government.
In response to heightened tensions and protests at UCLA, the university unveiled new regulations that formalize interim policies. These measures restrict unauthorized encampments, ban masks or face coverings for individuals who violate rules, and designate outdoor spaces as off-limits for demonstrations that have not received prior approval. The policies come after significant demonstrations last year, including a violent incident involving a pro-Israeli group attacking a pro-Palestinian encampment.
The actions taken by the Trump administration against Harvard represent a broader strategy to influence university policies and funding, suggesting a significant shift in the relationship between the federal government and higher education institutions.
