Ed Dept puts Harvard on cash monitoring status, sets 20-day deadline before further enforcement
Under the new status, Harvard must disburse student aid with its own money before requesting reimbursement from the government.
In addition to the financial constraints, the university must turn over admissions data by early October.
The U.S. Department of Education has warned Harvard University that it could lose access to federal student aid unless it turns over admissions data within 20 days, while also placing the school on heightened cash monitoring status over concerns about its financial stability.
On Friday, the Department’s Office for Civil Rights (OCR) issued a Denial of Access letter after Harvard refused to provide records for a compliance review to determine whether the school continues to use racial preferences in admissions, despite the Supreme Court’s 2023 ruling in Students for Fair Admissions v. Harvard.
The letter gave Harvard 20 calendar days to comply or face further enforcement action.
[RELATED: Harvard removes BLM sign, cites public signage rules instead of new DEI rollbacks]
“The highest court in our nation ruled conclusively that Harvard was illegally using extreme racial preferencing in their admissions processes,” Education Secretary Linda McMahon said.
“No one – not even Harvard – is above the law, and we will not allow any institution to disregard its obligation to uphold students’ civil rights.”
At the same time, the Department’s Office of Federal Student Aid placed Harvard on heightened cash monitoring status, which requires the school to disburse federal student aid using its own money before requesting reimbursement from the government. The Department also ordered Harvard to post an irrevocable $36 million letter of credit to protect taxpayers against potential liabilities.
Officials cited three “triggering events” behind the designation: a Department of Health and Human Services finding that Harvard violated Title VI of the Civil Rights Act, the university’s refusal to cooperate with OCR requests, and its decision to issue more than $1 billion in new bonds while cutting jobs and freezing salaries.
The Department said the bond issuance, equal to about 15 percent of Harvard’s annual revenue, raises questions about the school’s ability to meet federal obligations if funding is suspended. McMahon said the measures are necessary “to protect taxpayers.”
[RELATED: Harvard ends long-running minority recruitment program following federal DEI crackdown]
The dual actions escalate a months-long clash between Harvard and the Trump administration.
Earlier this year, the Department froze billions in research funding before a judge ordered the money restored. The new restrictions suggest the administration is using financial leverage to push Harvard toward merit-based admissions policies.
