DOJ Launches Investigation Into Harvard’s Foreign Funding Practices Amid Concerns of Discrimination

The Department of Justice (DOJ) has initiated a compliance review into Harvard University’s financial aid programs, scrutinizing whether the university’s funding from China might discriminate against American students. This investigation focuses on potential violations of Title VI of the Civil Rights Act of 1964, which bars discrimination on race, color, or national origin by recipients of federal financial assistance. The probe follows an audit of Harvard’s disclosures related to foreign funding.

Assistant Attorney General for Civil Rights Harmeet K. Dhillon commented, highlighting the issue of schools accepting federal dollars while potentially allowing foreign-sourced funding arrangements to disadvantage American citizens. The DOJ’s investigation was spurred by Harvard’s reported foreign funding of nearly $4.5 billion, including more than $630 million originating from China-based sources. This raises questions under Section 117 of the Higher Education Act, which mandates universities to report substantial foreign gifts and contracts.

The DOJ’s notice to Harvard pointed to donor-imposed restrictions on the university’s use of certain funds. Allegations suggest that these funds might support financial aid programs favoring students from particular countries and could place U.S. students at a disadvantage. However, the department maintains that it has yet to draw any definitive conclusions regarding Harvard’s compliance with federal law.

As part of the review, the DOJ has requested detailed information about the “Chinese Restricted Funds,” including donor restrictions, management of the funds, and details about the financial aid recipients such as their nationality and citizenship status. Harvard has been asked to respond by July 31, amidst its assurance, through spokesperson Jason A. Newton, that it adheres to foreign-funding disclosure requirements and does not engage in unlawful discrimination based on race or national origin. Further commentary from the original notice emphasized Harvard’s willingness to engage constructively with the government’s review process.

This investigation unfolds against a backdrop of broader tensions between the U.S. government and Harvard, which have previously included disputes over admissions practices and the enrollment of international students. The Chinese Embassy, through spokesperson Liu Chang, underscored the mutual benefits of educational cooperation between China and the U.S., cautioning against political interruptions of such exchanges.