Harvard goes to war with Donald Trump in high-stakes billion-dollar faceoff

Boston: The US Department of Education announced Monday it is freezing approximately $2.3 billion in federal funding to Harvard University. The move comes amid a standoff between the Ivy League institution and the Trump administration over demands to address antisemitism and alleged civil rights violations.

The administration’s letter called for sweeping reforms at Harvard, including merit-based admissions and hiring, audits on diversity views, a ban on face masks targeting pro-Palestinian protesters, and the closure of diversity, equity, and inclusion (DEI) programs. The letter also urged Harvard to stop recognizing student groups promoting unlawful activity and to cooperate with immigration authorities.

Harvard President Alan Garber rejected the demands, stating the university would not comply with efforts to dismantle DEI programs or suppress campus protests. “No government should dictate what private universities can teach or whom they can admit,” he wrote. The Trump administration's decision triggered backlash, including protests, a lawsuit from the American Association of University Professors, and support from alumni defending academic freedom.

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Plaintiffs argue the administration bypassed legal procedures, using funding as leverage to enforce political agendas. “These demands seek to impose political views, not remedy legal violations,” their lawsuit stated.

In total, Harvard typically receives over $600 million to $1 billion annually from the federal government. The $2.3 billion figure includes multi-year grants and contracts stretching over time, not all immediate funds.

Harvard receives $600 to $700 million a year in research grants used for funding medical, scientific, engineering, and social science research across Harvard’s schools and research centers.

It also gets millions for student financial aid to support for low- and middle-income students through grants and subsidized loans.

Harvard gets federal contracts worth  $50 to $100 million a year for consulting, public policy research, defense-related technology projects, or public health initiatives. It also receives grants for libraries, teacher training, or academic development in underfunded fields.