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DOJ probes Harvard over China-linked donations and foreign student aid

The Justice Department is investigating whether Harvard's China-linked scholarships discriminated against American students

BY SWATI SAKSHI MISHRA

PUBLISHED 1 HOUR AGO

Federal officials are examining whether foreign donations influenced financial aid decisions at a university that receives billions in federal support. (Getty Images)

WASHINGTON, DC: The Justice Department has launched a Title VI compliance review into Harvard University over allegations that the Ivy League institution accepted China-linked donations to fund financial aid programs that gave preference to students from specific countries, potentially disadvantageous to American applicants and others based on their national origin.

The review marks the latest escalation in the Trump administration's campaign to scrutinize Harvard, but shifts the focus from foreign funding transparency to whether the university's use of those funds violated federal civil rights law.

CAMBRIDGE, MASSACHUSETTS - MARCH 12: Students walk through Harvard Yard on the campus of Harvard Uni — The Justice Department has opened a Title VI compliance review into Harvard over allegations that China-linked financial aid may have disadvantaged American students. (Getty Images)

In a letter dated July 20, the department emphasized that the investigation has not reached any conclusions and is intended to determine whether Harvard's financial aid practices complied with Title VI of the Civil Rights Act, which prohibits discrimination by recipients of federal financial assistance.

DOJ questions foreign-funded scholarships

According to the Justice Department, Harvard's disclosures under Section 117 of the Higher Education Act identify it as the American university receiving the largest volume of foreign funding, reporting nearly $4.5 billion from overseas sources. Among those contributions, more than $630 million originated from China-based donors.

CAMBRIDGE, MASSACHUSETTS - MAY 29: Harvard President Alan Garber walks the Tercentenary Theatre processional through Harvard Yard on May 28, 2025 in Cambridge, Massachusetts. The joyous occasion unfolds amid escalating tensions between Harvard and the Trump administration, which has ordered the cancellation of federal contracts valued at approximately $100 million. (Photo by Libby O'Neill/Getty Images) — Federal officials are examining whether China-linked donations were used to create scholarship programs that gave preference to students from particular countries. (Libby O'Neill/Getty Images)

Federal officials say their review was prompted after examining Harvard's own disclosures, which allegedly showed that some China-linked gifts carried restrictions requiring the university to establish financial aid funds that gave preference to students from particular countries.

The DOJ argues that if Harvard accepted those conditions while receiving federal funds, the arrangement could raise questions under Title VI because financial aid decisions may have been influenced by an applicant's national origin rather than applied equally to all students. The department stressed that these allegations remain under investigation and that no determination of wrongdoing has been made.

Americans allegedly faced disadvantage

Graduation students, faculty, and family gather in Harvard Yard on May 28, 2025 in Cambridge, Massachusetts. As President Donald Trump intensifies his fight with the nation’s oldest and one of the world’s wealthiest universities, his administration has asked federal agencies on Tuesday to cancel contracts with Harvard University valued at approximately $100 million (Spencer Platt/Getty Images) — The review centers on whether American applicants and students from other national origins were disadvantaged by nationality-based financial aid preferences. (Spencer Platt/Getty Images)

The department's central concern is not simply the receipt of foreign money, but whether those donations resulted in American students and applicants from other national origins being placed at a disadvantage.

The DOJ letter states that Harvard appears to have accepted donations with nationality-based restrictions and then awarded financial aid accordingly, potentially disadvantageous to US citizens and applicants from countries outside the preferred groups.

If the investigation ultimately concludes that Harvard violated Title VI, the university could face serious consequences. The department said it would first attempt to secure voluntary compliance but retains the authority to suspend, terminate or refuse future federal financial assistance, in addition to pursuing civil enforcement if necessary. At present, however, officials reiterated that the review remains in its investigative stage.

Harvard ordered to produce records

As part of the compliance review, the DOJ has directed Harvard to produce extensive documentation related to donations received from entities affiliated with the People's Republic of China and other China-based sources. Investigators are seeking gift agreements, internal policies governing restricted foreign funds, correspondence discussing those donations and records explaining how the university administered scholarships funded by those contributions.

The department has requested gift agreements, internal communications and records detailing how China-linked scholarship funds were awarded. (justice.gov)

The request also extends to student-level information. Harvard has been instructed to provide records identifying scholarship recipients, including their citizenship status, country of origin, nationality, enrollment history and the amount of financial aid received through the questioned programs.

Federal officials additionally attached a list of China-based contributors whose donations are under review, including corporations, charitable foundations and universities. Harvard has until July 31 to respond unless it secures an extension from the department.