Harvard’s “$2.6 Billion Plus” Federal Funding Loss Looms Larger

Harvard University’s federal funding woes are escalating, with a new threat to cut all federal resources potentially adding to the over $2.6 billion it has already lost. The Trump administration has concluded an investigation alleging civil rights violations against Jewish students, stating Harvard was a “willful participant in anti-Semitic harassment.”
This current threat is based on findings that Harvard failed to uphold civil rights laws designed to protect students from discrimination based on race or nationality. The university’s previous financial losses were a direct consequence of its refusal to comply with President Trump’s demands for extensive reforms in its hiring, admissions, and governance policies.
The Trump administration’s engagement with Harvard has been multifaceted. Prior to the anti-Semitism investigation, President Trump had publicly criticized the university’s enrollment of international students, proposing a 15% cap. His rationale was that a high percentage of foreign students, such as Harvard’s reported 31%, disadvantaged American applicants.
The dispute reached a legal standoff when the administration revoked Harvard’s Student and Exchange Visitor Program certification, effectively barring the university from enrolling new international students and threatening the status of current ones. Harvard responded by suing the Trump administration, labeling the ban as unconstitutional retaliation. However, recent statements from President Trump indicate a potential thaw in relations, with ongoing negotiations hinting at a possible “historic” settlement.