Federal Investigation Examines Harvard’s Foreign-Funded Financial Aid for Potential National Origin Discrimination

The Department of Justice launched an inquiry Monday into Harvard University’s handling of foreign donations that may have imposed restrictions limiting financial aid eligibility to students from specific nations, potentially disadvantaging American applicants. The federal review focuses on whether such arrangements run counter to Title VI of the Civil Rights Act, which prohibits institutions receiving federal funding from engaging in discrimination based on national origin. Harmeet Dhillon, the Assistant Attorney General for Civil Rights, emphasized that American students deserve equitable access to scholarships and aid without interference from foreign donor stipulations.

According to DOJ officials, certain donors with Chinese interests directed Harvard to allocate funds specifically toward students from particular countries, an arrangement that could systematically disadvantage applicants of other nationalities. The department has stressed that its examination remains preliminary and no determinations have been made regarding violations. Harvard’s identity as the recipient of scrutiny was not disclosed initially, nor were specific scholarships or donor names identified in the department’s announcement.

Harvard rejected allegations of unlawful discrimination, stating in a response that the institution complies with all reporting requirements and Title VI obligations regarding race, ethnicity, and national origin in its aid distribution. The university noted it offers need-based aid to international students using institutional funds while federal assistance generally remains restricted to eligible American citizens. Private donations and scholarship funds have been utilized to support non-domestic students, according to the university’s statement.

A Civil Rights Division audit of mandatory foreign gift disclosures—required for donations and contracts exceeding $250,000—revealed Harvard reported approximately $4.5 billion in foreign funding, surpassing any other American university. China represented the largest foreign source, accounting for over $630 million in contributions. A 2014 donation of $15 million from SOHO China co-founders Pan Shiyi and Zhang Xin to support Chinese students exemplifies the type of restricted gift now under federal examination.

This investigation represents one of multiple fronts on which the Trump administration has challenged Harvard, with previous actions targeting alleged antisemitism, admissions practices, and international student policies. A federal court previously blocked efforts to eliminate billions in research funding from the institution as related litigation progresses.