The Department of Justice has opened an inquiry into whether Harvard University has accepted foreign donations that may have improperly favored students from China and other countries over American students. The review will examine if any donor-imposed nationality-based restrictions on financial aid violate Title VI of the Civil Rights Act, which 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."
According to the DOJ, some China-based donors allegedly directed Harvard to use their contributions for aid programs benefiting students from specific countries. The department suggested that adhering to such stipulations could disadvantage students of other nationalities, including Americans. Officials emphasized that the review is ongoing and no conclusions have been reached. Specific scholarships or donors under examination were not identified.
Harvard University has denied that its financial aid policies contravene 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," a university statement read.
Federal law mandates that colleges and universities report foreign gifts and contracts exceeding $250,000. The DOJ indicated that an audit of Harvard's disclosures revealed nearly $4.5 billion in foreign funding, the largest amount reported by any American university. This includes over $630 million from China, its primary foreign source. While Harvard provides need-based institutional aid to international students, federal grants are typically reserved for eligible U.S. students. The university also utilizes private scholarships and employment funds for international students. Some private gifts have been specifically designated for students from particular nations, such as a 2014 donation of $15 million from SOHO China co-founders Pan Shiyi and Zhang Xin to support Chinese students at Harvard. The DOJ has not confirmed if this particular gift is part of the current review.
This inquiry represents an additional area of scrutiny for Harvard, which has previously faced federal examination 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 the university amid ongoing litigation.