The Justice Department launched an investigation into Harvard University on Monday, accusing the Ivy League school of using foreign money to provide financial aid that deliberately excludes U.S. citizens. The probe, announced by the Trump administration, targets what officials describe as discriminatory practices tied to Chinese-funded scholarship programs.
Assistant Attorney General Harmeet Dhillon, who leads the DOJ’s Civil Rights Division, stated that schools accepting federal dollars cannot simultaneously use foreign contributions to aid international students while shutting out Americans. “Doing so is illegal, and we will stop it wherever we find it,” she said in a statement.
The compliance review will examine whether Harvard’s “China-based financial aid programs and practices” violate Title VI of the Civil Rights Act of 1964, which bars discrimination based on national origin. The DOJ did not specify which scholarships it is scrutinizing, noting that it has not reached any conclusions.
Federal records show Harvard has accepted $630 million from Chinese sources over the decades, part of a larger $4.5 billion in foreign funding. U.S. law requires universities to report gifts and contracts from foreign entities exceeding $250,000 annually.
Harvard spokesperson Jason Newton pushed back, saying the university “follows the law for required reporting of donations and, consistent with our legal obligations under Title VI, does not unlawfully discriminate on the basis of race, ethnicity, or national origin in allocating financial aid.”
The investigation is the latest front in the Trump administration’s broader crackdown on higher education, which has included lawsuits over campus antisemitism and efforts to roll back diversity, equity, and inclusion programs. The administration has also targeted Harvard over its handling of pro-Palestinian protests following the start of the Israel-Hamas war. In May, Harvard asked a federal judge to dismiss a separate federal lawsuit accusing it of failing to protect Jewish students, arguing the government’s case relied on outdated circumstances.
Tensions escalated further in June 2025, when Harvard sued the Trump administration after the president barred the university from enrolling new international students, claiming foreign students were taking spots from Americans. The new DOJ review adds another layer to the ongoing legal and political battle between the school and the White House.
The investigation also fits into a pattern of the administration using federal leverage to pressure institutions. For instance, Trump has withheld $1 billion in Medicaid payments from California and Minnesota over fraud allegations, and the administration has pushed back on foreign influence in other sectors, such as vowing to address Houthi threats to Red Sea shipping.
The DOJ’s review could have significant implications for how universities manage foreign-funded scholarships, particularly those tied to China. Critics argue such programs may favor students from specific countries, while supporters say they foster global exchange. Harvard has maintained that its financial aid decisions comply with all federal laws.
