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3h ago

Education Department Puts Harvard on Heightened Cash Monitoring, Demands $36 Million Letter of Credit

Federal officials cite civil-rights noncompliance alongside recent bond sales as triggers for the rare oversight step.

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 now front federal student-aid disbursements and seek reimbursement, with students’ access to aid continuing under the new terms.
  • The Office for Civil Rights issued a denial-of-access letter seeking undergraduate admissions records to assess compliance with the Supreme Court’s 2023 ruling on race in admissions and warned of enforcement if Harvard does not comply.
  • The department said three events triggered the move: a Title VI violation determination, noncompliance with OCR requests, and concerns over more than $1 billion in bonds Harvard issued this spring.
  • Federal Student Aid is requiring an irrevocable $36 million letter of credit or other acceptable financial protection to guard against potential liabilities.
  • A judge earlier ordered most frozen research funds restored, with Harvard reporting $46 million released Friday, as legal fights and negotiations with the administration continue.