Trump Administration Tightens Restrictions on Harvard Over Federal Aid

The Trump administration has intensified its battle with Harvard University, imposing new limits on the school’s access to federal student aid. The U.S. Department of Education placed Harvard on “heightened cash monitoring,” requiring the university to use its own funds before drawing federal aid. Officials cited concerns over Harvard’s financial stability, pointing to layoffs and bond issuances despite its $53 billion endowment.

The department also demanded a $36 million letter of credit to secure financial obligations and warned that Harvard risks losing access to federal aid entirely if it fails to comply with records requests from the Office of Civil Rights. That office continues to investigate whether Harvard’s admissions still consider race following the Supreme Court’s 2023 ruling against affirmative action.

The move comes as President Trump escalates his campaign against U.S. universities, criticizing them for what he calls “radical left ideologies” tied to pro-Palestinian protests, transgender policies, climate initiatives, and diversity programs. Trump has pushed for settlements similar to those reached with Columbia University, which agreed to pay $220 million, and Brown University, which pledged $50 million. He has insisted Harvard should pay at least $500 million.

Meanwhile, UCLA announced new protest rules after months of demonstrations over Israel’s war in Gaza. The updated policies restrict encampments, require approval for most protests, and ban masks for rule violators. The University of California system described the crackdown as one of its most serious institutional threats.

Harvard has warned that the combined impact of federal actions could cost nearly $1 billion annually. The university is challenging some of the measures in court, recently winning a ruling that restored over $2 billion in unlawfully terminated research grants.