DOJ opens probe into Harvard’s financial aid for alleged discrimination against American students

The Justice Department is reviewing whether Harvard University accepted foreign donations that improperly favored students from China and other countries over American students.

The department said Monday that Harvard’s foreign-funding disclosures raised concerns that some donors imposed nationality-based restrictions on financial aid. Officials are examining whether those arrangements violate Title VI of the Civil Rights Act, which bars 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,” Assistant Attorney General for Civil Rights Harmeet Dhillon said in a statement.

“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,” she continued.

The DOJ said some China-based donors directed Harvard to use their money for aid programs benefiting students from particular countries. The department alleged that complying with those restrictions could disadvantage students of other nationalities, including Americans.

Officials stressed that the review remains ongoing and that the department has not reached any conclusions. The DOJ also did not identify the specific scholarships or donors under examination.

Harvard 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.

Federal law requires colleges and universities to report foreign gifts and contracts worth at least $250,000. The DOJ said a Civil Rights Division audit of those disclosures found that Harvard had reported nearly $4.5 billion in foreign funding — more than any other American university — including over $630 million from China, its largest foreign source.

The university provides need-based institutional aid to international students, while federal grants and other government assistance are generally limited to eligible US students. Harvard also uses private scholarship and employment funds to support students from outside the country.

Some private gifts have been designated for students from specific nations. In 2014, SOHO China co-founders Pan Shiyi and Zhang Xin donated $15 million to support Chinese students at Harvard. The DOJ has not said whether that gift is part of its review.

The inquiry adds another front to the Trump administration’s broader conflict with Harvard. Federal officials have also scrutinized the university over alleged antisemitism, admissions practices and its treatment of foreign students.

A federal judge previously blocked the administration from cutting billions of dollars in research funding from Harvard as related litigation continues.

The Associated Press contributed to this report.