The administration of US President Donald Trump on Friday intensified its campaign against Harvard University, imposing new restrictions on the Ivy League university's ability to receive federal funds for student aid, citing concerns about the "financial condition" of the oldest and wealthiest university in the United States, UNN reports with reference to Reuters.
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The US Department of Education said it had placed Harvard, based in Cambridge, Massachusetts, under "enhanced cash monitoring," a departure from normal practice that requires the university to use its own funds to pay federal student aid before using department funds.
Trump has tightened measures against universities and threatened cuts in federal funding over a range of issues, such as pro-Palestinian protests against the offensive by Israel, a US ally, in the Gaza Strip, transgender policies, climate initiatives, and diversity, equity, and inclusion (DEI) programs.
The US Department of Education also requires Harvard to open a $36 million letter of credit to ensure it meets its financial obligations. The letter states that recent events have raised concerns about Harvard's financial condition, citing the university's decision to issue bonds and make cuts amid a conflict with the White House.
The US Department of Education said Harvard risks losing access to all federal student aid for failing to comply with requests from the Office of Civil Rights for documents, which, as warned in a separate letter, could lead to enforcement action.
This office is investigating whether Harvard continues to consider race in undergraduate admissions.
Harvard did not respond to requests for comment.
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In July, the government settled its federal investigations with Columbia University, which agreed to pay the government over $220 million, and Brown University, which said it would pay $50 million to support local workforce development. Both universities agreed to some of the government's demands.
The Trump administration is seeking a settlement with Harvard. Trump said Harvard should pay "no less than $500 million."
The US government separately offered to settle an investigation into the University of California, Los Angeles, over a $1 billion payment by the university. California Governor Gavin Newsom called the offer an attempted shakedown. In August, the university reported that the government had frozen nearly $600 million in funding for UCLA.