Trump Administration Tightens Financial Scrutiny on Harvard

The Trump administration has intensified its scrutiny of Harvard University, introducing new financial restrictions affecting the institution's access to federal funds for student aid. The U.S. Department of Education has placed Harvard on 'heightened cash monitoring' status, requiring the prestigious Ivy League school to use its funds before accessing department funds.

Further measures include a demand for Harvard to post a $36 million letter of credit to ensure financial obligations are met. Recent developments, such as the issuance of bonds and layoffs, have triggered concerns about the university's financial stability. These actions are deemed necessary to safeguard taxpayers, according to Education Secretary Linda McMahon.

Harvard's participation in federal student aid programs is at risk due to non-compliance with requests for records from the Office of Civil Rights. The office is investigating Harvard's admissions policies after the 2023 Supreme Court ruling deemed affirmative action practices unlawful. With a $53 billion endowment, Harvard has faced a $1 billion annual budget impact due to federal actions and is pursuing legal action against some of these measures.

(With inputs from agencies.)