In new attack, Trump administration questions Harvard's financial stability

(The Hill) -- The Education Department on Friday said it would place Harvard on Heightened Cash Monitoring (HCM) status due to concerns about its financial stability, the latest in a long list of Trump administration moves against the nation’s oldest and richest university.  

The new status means Harvard will have to use its own funds to initially disburse federal student aid before going to the department, although students will still have access to federal money.  

Harvard covering the initial disbursement is a “guardrail,” according to the administration, “to ensure Harvard is spending taxpayer funds responsibly.” 

The Federal Student Aid office will also require an irrevocable letter of credit for $36 million due to the financial risk the government is taking on as the institution is under numerous investigations from the Trump administration, according to the department.

“Today’s actions follow Harvard’s own admission that there are material concerns about its financial health. As a result, Harvard must now seek reimbursement after distributing federal student aid and post financial protection so that the Department can ensure taxpayer funds are not at risk,” said Secretary of Education Linda McMahon. “While Harvard remains eligible to participate in the federal student aid program for now, these actions are necessary to protect taxpayers.”   

The Hill has reached out to Harvard for comment.  

Additionally, the Education Department Friday said in a separate letter more enforcement actions would be taken against Harvard if it didn’t provide more information about its admission processes.  

The Office for Civil Rights has indicated concerns that Harvard is using race in its admission considerations against the ruling of the Supreme Court in 2023.  

The two actions on Friday are in addition to the months of fighting between Harvard and President Trump  

Trump's efforts against the university suffered a major blow recently after a court ruled for the restoration of billions of dollars to Harvard that was paused by the federal government.