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3w ago

Education Department Puts Harvard on Heightened Cash Monitoring, Demands $36 Million Guarantee

Officials say civil-rights findings and Harvard’s reliance on recent bond sales raised concerns about financial risk.

The Education Department is also seeking to have Harvard post a letter of credit for $36 million to ensure its financial obligations are met.
FILE - People take photos near a John Harvard statue, left, on the Harvard University campus, Jan. 2, 2024, in Cambridge, Mass. (AP Photo/Steven Senne, File)
Banners hang from the side of Memorial Church on the first day of classes at Harvard University.
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Overview

  • Harvard must front federal student aid from its own funds and then seek reimbursement, and it is required to provide an irrevocable $36 million letter of credit.
  • The Office for Civil Rights issued a denial-of-access letter and gave Harvard about 20 days to turn over admissions records tied to race or face further enforcement.
  • The department said the oversight move was triggered by an HHS Title VI determination involving antisemitism concerns, Harvard’s noncompliance with OCR requests, and more than $1 billion in recent bond issuances and layoffs.
  • Students’ access to federal aid continues under the new status, but federal officials say the measures are a guardrail to protect taxpayer funds.
  • The action follows months of federal funding freezes that a judge partially overturned; Harvard said $46 million in research funding from HHS was released on Friday.