AdvertisementAdvertisementProtesters gather outside the Moakley Federal Courthouse, where Harvard University challenged US$2.6 billion in funding cuts by the Trump administration, Jul 21, 2025, in Boston, US. (Photo: AP/Charles Krupa)20 Sep 2025 03:19AM (Updated: 20 Sep 2025 03:22AM) Bookmark Bookmark WhatsApp Telegram Facebook Twitter Email LinkedInRead a summary of this article on FAST.Get bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST BOSTON: The Trump administration escalated its campaign against Harvard University on Friday (Sep 19), placing new restrictions on the Ivy League school’s access to federal student aid and citing concerns about its financial position.The US Department of Education said Harvard had been placed on “heightened cash monitoring” status, requiring it to use its own funds to disburse federal student aid before drawing down money from the government.It is also seeking to have Harvard post a US$36 million letter of credit to guarantee its financial obligations.CIVIL RIGHTS INVESTIGATIONIn a separate letter, the department’s Office of Civil Rights warned Harvard it could face further enforcement action unless it provided additional records for review. The office is investigating whether Harvard is illegally considering race in its admissions process.Harvard did not immediately respond to a request for comment.The university, which has a US$53 billion endowment, has never indicated it faced financial crisis. But in recent months it has cut spending and conducted layoffs after President Donald Trump’s administration launched a campaign to tie federal funding to changes at universities he accuses of fostering antisemitism and left-wing ideology.US judge rules Trump unlawfully cancelled Harvard’s research grantsUS investigates Harvard's role in exchange visitor programmeHarvard challenges Trump administration in court over cancelled research fundingMULTIBILLION-DOLLAR IMPACTIn July, Harvard said the combined effect of recent federal actions could reach nearly US$1 billion annually. The university has filed lawsuits, and earlier this month a judge ruled the administration had unlawfully terminated more than US$2 billion in research grants.The Trump administration has been pressing Harvard to settle. During a recent cabinet meeting, Trump said Harvard should pay “nothing less than US$500 million” as it had “been very bad.”Source: Reuters/fsSign up for our newslettersGet our pick of top stories and thought-provoking articles in your inboxSubscribe hereGet the CNA appStay updated with notifications for breaking news and our best storiesDownload hereGet WhatsApp alertsJoin our channel for the top reads for the day on your preferred chat appJoin hereAlso worth readingContent is loading...Expand to read the full storyGet bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST