Justice Department reviews Harvard aid tied to Chinese donations
The inquiry asks whether donor-funded scholarships at Harvard exclude U.S. students in violation of civil rights law.
By Sofia Marchetti · World Affairs Correspondent
3 min read
The Justice Department has opened a review of Harvard University financial aid programs funded by Chinese donors, saying it is examining whether U.S. students were excluded because of nationality. The inquiry adds another federal front to the Trump administration’s continuing clash with the Ivy League school.
Department officials announced the compliance review Monday and said Harvard’s foreign funding disclosures raised questions about possible discrimination against American students. The department said it has not reached any findings and did not identify the donors or scholarship programs under review.
The review focuses on what the Justice Department called Harvard’s China-based financial aid programs. According to the department, Chinese donors have supported aid limited to students from particular countries, a condition the agency said could violate rules barring discrimination based on national origin.
Harmeet Dhillon, who leads the department’s Civil Rights Division, said schools that receive federal money cannot also accept foreign funds for aid programs that deliberately leave out American citizens. She said the department would act where it finds illegal exclusion.
Harvard said it was examining the notice from the Justice Department. In a written statement, the university said it complies with donation reporting rules and, under Title VI obligations, does not unlawfully discriminate by race, ethnicity or national origin when awarding financial aid.
Liu Chang, a spokesperson for the Chinese embassy in Washington, said education cooperation between China and the United States benefits both countries. Liu said China believes ordinary educational and academic exchanges should not be disrupted for political reasons.
Foreign funding under scrutiny
Harvard, like many U.S. universities, receives money from abroad through gifts and contracts. The Trump administration has pressed colleges to disclose more about foreign funding, arguing that money from foreign adversaries can raise national security concerns.
Harvard’s federal disclosures show $630 million from Chinese sources over decades, according to figures cited by the Justice Department. The university has reported roughly $4.5 billion in total foreign funding. The department cited those totals but did not name specific donors or funds involved in the review.
The Justice Department described the inquiry as a compliance review, meaning the federal government initiated it rather than responding to an outside complaint.
Harvard is unusual among U.S. universities because it provides need-based aid to international students on the same terms as U.S. students. Federal grants and other federal aid are limited to American students, while Harvard’s financial aid website says the university has its own job and scholarship money available for foreign students.
Some foreign donors have directed gifts toward international students. In 2014, Pan Shiyi and Zhang Xin, the Chinese couple who co-founded SOHO China, gave Harvard $15 million for financial aid for Chinese students. The gift drew criticism in China from people who said the money should have gone to Chinese universities rather than a foreign school.
A broader fight with Harvard
The new review makes an unusual civil rights argument: that private donor restrictions favoring students from certain countries may harm U.S. students and others on the basis of national origin. The Justice Department said Harvard appeared to be accepting restricted funds and using them for foreign students, presumably Chinese students, to the possible disadvantage of students from other national origins, including American citizens.
The Trump administration has repeatedly targeted Harvard as part of its campaign against what it calls “wokeness” and alleged antisemitism in higher education. A federal judge has blocked the White House from cutting billions of dollars in federal research funding to Harvard while that dispute continues.
The administration has also sought to restrict Harvard’s ability to enroll foreign students and U.S. military members, and it has opened investigations into the university’s admissions process.
This story draws on original reporting from Fortune.