Education Department directs Harvard University to use its own funds to cover student aid

The Department of Education on Friday placed Harvard University on heightened cash monitoring status, which requires the university to use its own funds to disburse federal student aid before drawing funds from the government.

The department said that students at the Ivy League school will still have access to federal aid but that the initial disbursements will need to be covered by the school as a means to ensure the school is spending government funds appropriately. Harvard sits on a $53 billion endowment, CNN reported earlier this year.

The department said the latest action is the consequence of three events, including the department's determination that Harvard has violated Title VI of the Civil Rights Act, and allegations that Harvard has taken steps to secure $1 billion in bonds.

“Today’s actions follow Harvard’s own admission that there are material concerns about its financial health," Education Secretary Linda McMahon said in a statement. "As a result, Harvard must now seek reimbursement after distributing federal student aid and post financial protection so that the Department can ensure taxpayer funds are not at risk. While Harvard remains eligible to participate in the federal student aid program for now, these actions are necessary to protect taxpayers.”  

The order marks the latest escalation in Harvard's funding fight with the Trump administration. Harvard President Alan Garber has accused the federal government of attempting to exert “unprecedented and improper control" over the Ivy League school.

President Donald Trump has also recommended the Internal Revenue Service rescind the school's tax-exempt status after the school said it would not comply with the administration's demands over its handling of antisemitism. The demands included merit-based hiring, reforming programs with a history of antisemitism and getting rid of "diversity, equity and inclusion" policies.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.