The Justice Department has launched a new investigation into Harvard University, this time examining whether the school is permitting Chinese donors to fund scholarships that shut out American students — adding yet another federal inquiry to the growing list the Trump administration has directed at the prestigious Ivy League institution.
Department officials made the announcement Monday, stating that Harvard’s disclosures about foreign funding had “raised concerns” about potential discrimination against students from the United States. Officials were careful to note they “have not reached any conclusions” and did not identify which specific scholarship programs are under scrutiny.
The probe focuses on what the Justice Department described as Harvard’s “China-based financial aid programs.” According to officials, Chinese donors have contributed money to Harvard designated for financial aid that is restricted to students from specific countries — a limitation the department says could constitute illegal discrimination based on national origin.
Harmeet Dhillon, who heads the department’s Civil Rights Division, issued a pointed statement on the matter: “Schools cannot take federal dollars and then turn around and accept money from foreign sources to give financial aid that deliberately excludes American citizens — doing so is illegal, and we will stop it wherever we find it.”
Harvard responded by saying it was reviewing the Justice Department’s notice. “Harvard follows the law for required reporting of donations and, consistent with our legal obligations under Title VI, does not unlawfully discriminate on the basis of race, ethnicity, or national origin in allocating financial aid,” the university said in a written statement.
Liu Chang, a spokesperson for the Chinese embassy in Washington, also weighed in, saying that educational cooperation between China and the U.S. benefits both nations. “China maintains that normal education and academic exchange should not be disrupted for political purposes,” Liu said.
Harvard, like many American universities, accepts contributions from foreign sources through donations or contracts. The Trump administration has been pushing for increased transparency around such outside funding, arguing that money from foreign adversaries poses a national security threat.
Federal disclosure records show Harvard has received $630 million from Chinese sources over several decades, and roughly $4.5 billion in total foreign funding. The Justice Department referenced those numbers but did not name specific donors or programs being examined.
The current probe is classified as a compliance review, meaning it was initiated by the federal government on its own — not in response to a complaint from an outside party.
Unlike most U.S. universities, Harvard and a small number of peer institutions offer need-based financial aid to international students under the same criteria applied to American students. While federal grants and aid are reserved for U.S. students, Harvard makes its own scholarship and employment funding available to students from other countries, according to the university’s financial aid website.
In certain instances, foreign contributors have specifically designated their gifts for international students. In 2014, Pan Shiyi and Zhang Xin — a Chinese couple who co-founded the real estate firm SOHO China — donated $15 million to Harvard to support financial aid for Chinese students. The donation sparked criticism in China, where some viewed it as a betrayal to send money to a foreign institution rather than Chinese universities.
The Justice Department is making an unusual legal argument with this investigation: that directing privately donated funds toward students of specific nationalities constitutes a civil rights violation against American students.
“Harvard appears to be accepting these funds and, in adherence to their restrictions, providing student financial aid to foreign students, presumably Chinese, based on their national origin — to the potential detriment of students of other national origins, including American citizens,” the agency stated.
This latest inquiry is part of a broader and ongoing campaign by the Trump administration against Harvard. The school has been a central target in the administration’s efforts to combat what it calls “wokeness” and address alleged antisemitism in higher education. A federal judge has already blocked the White House from cutting billions of dollars in federal research funding from the university while legal disputes continue.
Despite that legal setback, the administration has pursued additional avenues of pressure, including efforts to restrict Harvard’s ability to enroll foreign students and military personnel, as well as launching separate investigations into the school’s admissions practices.
