US President Donald Trump’s administration on Friday escalated its campaign against Harvard University by placing new restrictions on the Ivy League school’s access to federal funds for student aid, citing concerns about the “financial position” of the nation’s oldest and wealthiest university.The US Department of Education said Harvard has been moved to a “heightened cash monitoring” status, which requires the university to use its own money to disburse student aid before being reimbursed. It also directed Harvard to provide a $36 million letter of credit to guarantee its financial obligations, pointing to the school’s recent bond issuances and staff layoffs as causes for concern, news agency Reuters reported.“While Harvard remains eligible to participate in the federal student aid program for now, these actions are necessary to protect taxpayers,” Education Secretary Linda McMahon said. The department further warned that Harvard could lose access to federal student aid if it fails to comply with records requests from the Office of Civil Rights, which is investigating whether the university still considers race in admissions despite the Supreme Court’s 2023 ruling against affirmative action.Harvard, with an endowment of $53 billion, has denied being in financial trouble but acknowledged that federal actions have strained its budget. In July, it estimated the impact of the Trump administration’s measures at nearly $1 billion annually. Earlier this month, a federal judge ruled that the government had unlawfully terminated more than $2 billion in research grants awarded to Harvard.The restrictions are the latest step in a larger confrontation. The Trump administration has accused Harvard of harboring “radical left” ideologies and failing to curb antisemitism, while targeting its funding, admissions policies and international student programs.Harvard has mounted multiple legal challenges, calling the measures unlawful and politically motivated. It has sued over frozen research grants and directives threatening international students, with courts granting temporary relief in some cases.Trump has personally taken aim at the university. During a recent cabinet meeting, he said Harvard should pay “nothing less than $500 million,” accusing the institution of having “been very bad.”
