DoED Puts Harvard Under Financial Monitoring: Federal Investigations Create Risk
4 hours ago
- #Education Policy
- #Harvard University
- #Federal Funding
- Harvard University placed on heightened cash monitoring status by the U.S. Department of Education.
- New restrictions require Harvard to disburse federal aid first and seek reimbursement, plus provide a $36 million letter of credit.
- Department of Education cites Harvard's $1.2 billion bond issuance and financial measures as signs of instability.
- Harvard joins over 500 institutions under scrutiny, standing out due to its $53 billion endowment.
- Triggering events include Title VI violation, noncompliance with civil rights requests, and bond issuance.
- Harvard issued $450 million in tax-exempt bonds in March and $750 million in taxable bonds in April.
- Federal government has cut funding by $2.7 billion, prompting Harvard to implement austerity measures.
- Education Department warns Harvard of further enforcement actions if admissions records are not submitted.
- White House and Harvard negotiations for a $500 million settlement have stalled.
- Federal judge ruled funding freeze unconstitutional, but White House plans to appeal.