The Trump administration downgraded Harvard’s financial standing, citing fiscal risks and Title VI violations, while the school insists funding continues.
The Trump administration has placed Harvard University on Heightened Cash Monitoring, requiring the Ivy League school to use its own funds to disburse federal student aid before seeking reimbursement. The Education Department also ordered Harvard to post a $36 million letter of credit over “financial responsibility” concerns.
Education Secretary Linda McMahon said the move follows Harvard’s “admission that there are material concerns about its financial health.” The action comes after the university sold $1.2 billion in bonds and faced restrictions on $2.6 billion in federal research funding over alleged violations of Title VI in its handling of campus antisemitism.
While a judge has temporarily blocked the funding cutoff, the administration has vowed to appeal. Harvard, with a $53 billion endowment, recently reported layoffs and freezes in hiring and salaries. A university spokesperson confirmed it received $46 million from the National Institutes of Health this month, its first major research funding in months.