US Justice Dept probing Harvard over financial aid programmes, alleges China donor influence

WASHINGTON – The US Justice Department said on July 20 that it has launched a new investigation into Harvard University, alleging that some of its financial aid programmes violate civil rights law by excluding American citizens.

The probe accuses Harvard of giving Chinese international students access to financial aid programmes in exchange for foreign contributions from sources inside China.

It is the latest strike by the Trump administration against the Ivy League university, which has been embroiled in a court battle over billions of dollars in frozen federal funding since last year.

The investigation also expands the scope of the White House’s college pressure campaign, bringing global academic partnerships under scrutiny alongside allegations of campus anti-semitism, racial discrimination in admissions and political bias in faculty hiring.

“Schools cannot take federal dollars and then turn around and accept money from foreign sources to give financial aid that deliberately excludes American citizens,” Assistant Attorney General Harmeet Dhillon said in a statement.

If the DOJ finds Harvard did discriminate in its aid awards, the university could be cut off from billions of dollars in federal research funding and student financial aid.

Harvard did not immediately respond to a request for comment.

The move signals a potential escalation of the administration’s focus on Chinese influence at US colleges, and at Harvard in particular.

Last year, Secretary of State Marco Rubio called for an investigation into possible sanctions violations at the university over its academic partnerships with Chinese organisations.

The DOJ probe is based on a government audit of detailed foreign donation data, which President Donald Trump mandated from private universities through an executive order last year.

Harvard received nearly US$4.5 billion from foreign sources between 1986 and 2026, more than any other college in the country according to federal data. China was the top source of those donations at more than US$630 million.

In a letter to Harvard, Dhillon wrote that the college must give investigators access to a trove of documents detailing their donations from Chinese-based or affiliated sources by July 31.

Non-compliance, she added, could result in enforcement measures – which could include the suspension of federal funding.

The Trump administration has increasingly leveraged civil rights investigations to exert pressure on colleges as it seeks to reshape higher education.

As part of another investigation into Harvard’s admission practices, the DOJ sued Harvard in February over non-compliance with document requests.

The Justice Department has recently taken on a more prominent role in the Trump administration’s crusade against elite colleges, opening multiple lawsuits and investigations against Harvard alone this year after negotiations between the university and White House officials stalled over a potential settlement to restore current and future research. BLOOMBERG