NEW YORK, Sept 20 — The Trump administration has imposed new restrictions on Harvard’s access to federal funds, escalating its ongoing clash with the prestigious university.
NEW YORK, Sept 20 — The Trump administration has imposed new restrictions on Harvard’s access to federal funds, escalating its ongoing clash with the prestigious university.
In a statement, the Department of Education said Harvard has been placed under “heightened cash monitoring (HCM) status” due to “growing concerns regarding the university’s financial position.” It cited the administration’s allegations of civil rights violations, uncertainty over future funding, the university’s bond issuance, and recent layoffs as reasons for the move.
Under the new status, Harvard must use its own funds to cover student financial aid packages upfront, with reimbursement from the government coming later. “Students will continue to receive federal funding, but Harvard must cover initial disbursements to ensure taxpayer funds are being spent responsibly,” the department said.
Additionally, federal officials are requiring Harvard to post an irrevocable US$36 million (RM151.5 million) letter of credit to safeguard against potential liabilities and ensure financial obligations are met.
The move marks the latest salvo in the Trump administration’s dispute with academia, which officials accuse of pushing “woke” ideology and failing to protect Jewish students during pro-Palestinian demonstrations. Harvard has denied the allegations, saying the government is seeking to interfere with its hiring, admissions, and curriculum.
Earlier this month, a Boston judge ordered the administration to lift a freeze on roughly US$2.6 billion in federal funds for 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.”
Harvard has not commented directly on the new restrictions but said Friday that it has begun recovering some frozen funds. “We are pleased to see the disbursement of US$46 million in research funding from the US Department of Health and Human Services. This is an initial step, and we hope to see funding restored across all federal agencies,” the university said. — AFP
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