US Education Department Places Harvard on Heightened Cash Monitoring Over Financial Concerns

The Trump administration has escalated its campaign against Harvard University by placing it on "heightened cash monitoring" status due to concerns about the university's financial stability despite its $53 billion endowment. This status requires Harvard to initially use its own funds to disburse federal student aid before seeking reimbursement from the government and to post a $36 million letter of credit as a financial guarantee. The Department of Education cited Harvard's issuance of $1 billion in bonds and ongoing investigations into the university's compliance with federal civil-rights laws, particularly regarding race considerations in admissions, as reasons for these actions. Although students retain access to federal aid, the measures serve as safeguards to protect taxpayer funds amid concerns about Harvard's financial health. The ongoing dispute includes legal battles over federal research funding cuts, recent court rulings restoring billions in funds to Harvard, and the administration's demands for a substantial settlement from the university. The Education Department has warned of additional enforcement actions if Harvard does not comply with requests for admissions documentation, highlighting the broader conflict between the Trump administration and the institution.