Harvard faces $2 billion funding freeze over diversity policies
The U.S. Department of Education has frozen over $2 billion in federal funds allocated to Harvard University in Massachusetts. The decision follows the university's rejection of President Donald Trump's demands for changes in its diversity policy and efforts to counteract anti-Semitism.
According to Reuters, the Department of Education (USDOE) blocked multi-year grants totalling approximately $3 billion CAD and contracts worth about $82 million CAD, which were meant to benefit the university founded in 1636. Harvard receives approximately $12 billion CAD annually in federal grants and contracts, making it the largest recipient of research funds.
The university's rector, Alan Garber, publicly rejected the administration's demands. In an open letter, he stated that the USDOE proposals, submitted on Friday, would enable the federal government to "control the Harvard community." They would pose a threat to "our values as a private institution devoted to the pursuit, production, and dissemination of knowledge."
No government - regardless of which party is in power - should dictate what private universities can teach, whom they can admit and hire, and which areas of study and inquiry they can pursue.
The Trump administration has previously frozen hundreds of millions of dollars in funding to various universities, arguing that not enough was being done to combat anti-Semitism. Washington is also calling for an end to diversity policies and preferences based on race, skin colour, or national origin. It calls for reducing the influence of faculty and students "more involved in activism than in academic work."
The authorities require external committees to conduct audits of departments regarding "diversity of views." They also propose examining foreign students for hostility toward "American values."
Reuters points out that the latest conflict between the administration and universities is a consequence of pro-Palestinian protests on campuses following the Hamas attack in 2023 and subsequent Israeli military actions in the Gaza Strip.
Professors file lawsuits against Trump administration
Some Harvard professors have filed a lawsuit against the administration over the blocking of nearly $12 billion CAD in federal grants. Harvard is attempting to secure a loan of approximately $1 billion CAD to mitigate potential financial shortfalls.
According to "U.S. News & World Report," Harvard's endowment, valued at approximately $67 billion CAD, makes it the richest university in America. Its financial strength is also rooted in alumni donations, lucrative research grants, and valuable real estate.
