The Trump administration has introduced fresh restrictions on Harvard University’s access to federal funds, intensifying its ongoing dispute with the prestigious institution.
In a statement on Friday, the U.S. Department of Education announced that Harvard has been placed under “heightened cash monitoring (HCM) status,” citing “growing concerns regarding the university’s financial position.” The department pointed to the administration’s accusations of civil rights violations, the university’s recent bond issuances, and employee layoffs as reasons for the move.
Under the new status, Harvard must initially use its own money to cover federal student financial aid packages before seeking reimbursement from the government. Officials emphasized that students will not lose access to federal aid, but described the measure as a safeguard to ensure responsible spending of taxpayer dollars.
The department also ordered Harvard to provide an irrevocable letter of credit worth $36 million, intended to cover potential liabilities and guarantee the school meets its financial obligations to both students and the federal government.
This development marks the latest escalation in the administration’s broader confrontation with elite universities. Trump officials have accused Harvard and other institutions of promoting “woke” ideology while failing to adequately protect Jewish students during pro-Palestinian demonstrations. Harvard has rejected those claims, arguing instead that the federal government is attempting to exert control over its admissions, hiring, and academic programs.
Earlier in September, a Boston judge ordered the administration to release about $2.6 billion in frozen federal funds to 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.”
While Harvard has begun recovering some of those funds, the university declined to comment on the new restrictions announced Friday.
