The United States President Donald Trump administration has tightened financial oversight of Harvard University, escalating its ongoing battle with the elite institution.
On Friday, the U.S. Department of Education placed Harvard under heightened cash monitoring, a designation that forces the university to cover federal student aid payments upfront before requesting reimbursement.
Officials justified the move by pointing to concerns over Harvard’s finances, including recent staff layoffs and bond issuances, as well as unresolved federal allegations of civil rights violations.
“Students will still receive their federal aid, but Harvard must initially use its own money to disburse funds. This measure is intended to safeguard taxpayer dollars,” the department stated.
As part of the new requirements, Harvard must also provide an irrevocable $36 million letter of credit, a financial guarantee meant to secure the school’s obligations to students and the federal government.
The decision marks the latest clash between Trump officials and higher education leaders, whom the administration has accused of advancing “woke” ideology and neglecting the safety of Jewish students during pro-Palestinian demonstrations.
Harvard has rejected those claims, saying the real issue is federal overreach into its admissions, hiring, and academic freedom.
The restrictions come just weeks after a Boston judge sided with Harvard, ordering the Education Department to release $2.6 billion in frozen federal funds, ruling that the administration had used antisemitism allegations as a “smokescreen” for politically motivated attacks on universities.
While Harvard declined to address the new oversight directly, it announced progress in recovering blocked funding, including $46 million in research grants recently released by the U.S. Department of Health and Human Services.
“We view this as a first step and are hopeful that more agencies will follow suit,” the university said in a statement.
