Trump administration places Harvard on heightened financial oversight

Source: NBC News

Sept. 19, 2025, 3:25 PM EDT


The U.S. Department of Education announced Friday that it has placed Harvard University on heightened cash monitoring as a result of "growing concerns" regarding its "financial position," the latest pressure tactic against the school by the Trump administration

The department's Office of Federal Student Aid (FSA) will be monitoring the university's spending, and will require it to "use its own funds to disburse federal student aid before drawing down funds from the Department," according to the statement. "Students will continue to have access to federal funding, but Harvard will be required to cover the initial disbursements as a guardrail to ensure Harvard is spending taxpayer funds responsibly," the department of education said.

The FSA will also require Harvard to post "an irrevocable letter of credit for $36 million or provide other financial protection that is acceptable" to the department of education in order to guarantee that the university can reach financial obligations.

This move comes after "three triggering events," according to the department, including a determination finding Harvard in violation of Title VI of the Civil Rights Act, which prohibits discrimination based on race or origin, its noncompliance to requests from the Office of Civil Rights and a concern that the university plans to issue over $1 billion in bonds to fund its operations.

Read more: https://www.nbcnews.com/news/us-news/trump-administration-places-harvard-heightened-financial-oversight-rcna232493