US President Donald Trump’s administration has placed new restrictions on Harvard University, citing concerns about the school’s financial position. The Department of Education has put Harvard on “heightened cash monitoring” status, requiring it to use its own funds for federal student aid before drawing down from the department.
The department is seeking a $36 million letter of credit from Harvard to ensure its financial obligations are met. This comes after recent events raised concerns about Harvard’s finances, including its decision to issue bonds and conduct layoffs amidst a conflict with the White House.
Harvard has never suggested it was on the verge of financial catastrophe but has cut spending in response to the administration’s campaign to leverage federal funding for change. The school’s $53 billion endowment suggests it is financially stable, but it has sued over some of the actions taken by the administration.
The restrictions come after a judge ruled this month that the administration had unlawfully terminated more than $2 billion in research grants awarded to Harvard.
Source: https://www.reuters.com/world/us/us-education-dept-raises-financial-responsibility-concerns-about-harvard-2025-09-19