Trump Administration Places Harvard Under Heightened Cash Monitoring

The Trump administration has placed Harvard University under heightened cash monitoring status, requiring the institution to use its own capital for student aid disbursements before seeking federal reimbursement. The U.S. Department of Education also demanded a $36 million irrevocable letter of credit to cover potential liabilities, citing concerns over Harvard's financial position following recent bond issuances and employee layoffs.

Simultaneously, the Department of Justice and the Department of Education's Office for Civil Rights launched investigations into whether Harvard continues to use race in undergraduate admissions in violation of a 2023 Supreme Court ruling. The government issued a denial of access letter, giving the university 20 days to provide requested documents or face further enforcement.

These actions follow a Boston court ruling that ordered the administration to unfreeze nearly $3 billion in research funding, with the judge stating the government used antisemitism as a smokescreen for an ideologically motivated assault. Harvard has begun recovering some of these funds, including $46 million from the U.S. Department of Health and Human Services.

Harvard has characterized the federal investigations as abusive and retaliatory. Conversely, the administration asserts it is using legal tools to restore accountability and transparency to institutions it claims are gripped by radical left ideologies.