The Department of Justice has opened an investigation into Harvard University, examining whether foreign donations have been used to create financial aid programs that disadvantage American students. The probe centers on concerns that donors, particularly from China, have imposed nationality-based restrictions on aid, which could violate Title VI of the Civil Rights Act. This law prohibits federally funded institutions from discriminating based on national origin.
"Every American student should have an equal opportunity to compete for college scholarships, grants, and other kinds of financial aid and benefits," stated Assistant Attorney General for Civil Rights Harmeet Dhillon. "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."
The DOJ's Civil Rights Division reviewed Harvard's foreign funding disclosures, which revealed nearly $4.5 billion in foreign funding, more than any other U.S. university. Of this, over $630 million came from China, Harvard's largest foreign source. Officials are concerned that Harvard's compliance with these donor-imposed restrictions could disadvantage students of other nationalities, including Americans.
Harvard has denied that its financial aid policies violate federal civil rights law. "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 statement.
The university provides need-based institutional aid to international students, while federal grants are typically reserved for U.S. students. Private scholarships and employment funds are also used to support international students. Some private gifts have been earmarked for students from specific nations; for example, SOHO China co-founders Pan Shiyi and Zhang Xin donated $15 million in 2014 to support Chinese students at Harvard. The DOJ has not confirmed if this specific donation is part of the current review.
This investigation adds to existing scrutiny of Harvard by federal officials regarding alleged antisemitism, admissions practices, and its treatment of foreign students. A federal judge previously blocked the administration from withholding billions in research funding from Harvard amid ongoing litigation.