Trump government imposes financial-based limitations on Harvard
Harvard University finds itself in the midst of a legal and financial storm, with the Office of Civil Rights reviewing its undergraduate admissions process following a 2023 Supreme Court ruling that affirmative action practices were unlawful. The Ivy League institution has not responded to requests for comment regarding these developments.
The review could potentially lead to Harvard losing all federal student aid funding, as the university is at risk of non-compliance with requests for records from the Office of Civil Rights. This action was taken due to concerns about Harvard's "financial position."
The Trump administration has placed Harvard on "heightened cash monitoring" status, restricting its access to federal funds for student aid. The government has also proposed a settlement with Harvard, with President Trump stating that the university should pay "nothing less than $500 million." The Education Department is seeking a letter of credit for $36 million from Harvard to ensure its financial obligations are met.
Harvard's financial woes have led to spending cuts and layoffs, despite its $53 billion endowment. This comes as part of the Trump administration's campaign to leverage federal funding to force change at universities. The university has even sued over some of the federal actions taken against it, leading a judge this month to rule the administration had unlawfully terminated more than $2 billion in research grants awarded to Harvard.
Meanwhile, the University of California, Los Angeles (UCLA) has also faced scrutiny. The government proposed settling its probe into UCLA with a $1 billion payment from the university. UCLA unveiled new protest rules on Friday, restricting unauthorized encampments, banning masks or face coverings for rule violators, and making outdoor spaces off-limits for demonstrations that are not pre-approved. The university system, which UCLA is a part of, has called this period one of the gravest threats in the institution's history.
California Governor Gavin Newsom called the $1 billion offer an extortion attempt. In July, a pro-Israel organization called Shurat HaDin demanded a settlement bond of 36 million US dollars from Harvard University, calling on the government of President Donald Trump to enforce it.
The government has settled federal investigations with Columbia University and Brown University, with both universities agreeing to pay millions to the government and support local workforce development. UCLA said in August that funding for the university was frozen, nearly $600 million.
Amidst these challenges, Harvard has allowed some changes, such as permitting pre-approved overnight events and outlining designated areas for public expression for which prior approval was not needed. However, the future of these institutions remains uncertain as they navigate these contentious issues.
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