DOJ Investigates Harvard’s China-Based Financial Aid Program

The U.S. Justice Department has launched a compliance review into Harvard University’s China-based financial aid programs, examining whether donor-restricted scholarships that favor foreign students over American citizens violate federal civil rights law, officials announced Monday.

The probe, opened by the department’s Civil Rights Division, targets financial aid programs funded by Chinese donors that may be limited to students from certain countries. The investigation marks the latest escalation in an ongoing, year-long confrontation between the Trump administration and America’s oldest university.

“Every American student should have an equal opportunity to compete for college scholarships, grants, and other kinds of financial aid and benefits,” said Harmeet Dhillon, assistant attorney general for civil rights. “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 Investigation

The compliance review — meaning it was initiated by the government rather than in response to an outside complaint — examines whether Harvard’s acceptance and administration of donor-restricted foreign funds violates Title VI of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, and national origin at institutions receiving federal funding.

Federal disclosures show Harvard has reported approximately $4.5 billion in total foreign funding — more than any other American university — including over $630 million from Chinese sources accumulated over decades, according to the Associated Press. The DOJ did not specify which scholarship programs or donors are under review.

One notable precedent: In 2014, Chinese real estate moguls Pan Shiyi and Zhang Xin, co-founders of SOHO China, donated $15 million to Harvard specifically to provide financial aid for Chinese students. The DOJ has not confirmed whether that gift is part of the current review.

Harvard’s Response

Harvard denied any wrongdoing, stating it complies fully with federal 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 reported by AP News.

Unlike the vast majority of U.S. universities, Harvard provides need-based institutional scholarships to international students on the same basis as American students. Federal grants and government assistance are generally reserved for U.S. citizens, but Harvard uses its own funds and private donations to support foreign students.

Broader Context: A Year of Conflict

The financial aid investigation is the latest front in a multi-pronged federal campaign against Harvard that began shortly after President Trump took office in January 2025. The administration has deployed nearly every lever of federal power to pressure the university, which has resisted what it calls unprecedented government overreach.

As detailed by Harvard Magazine, the conflict has included:

• Funding freezes: The government halted $2.2 billion in multiyear research grants in April 2025, though a federal judge restored them in September 2025, calling the administration’s antisemitism argument a “smokescreen” for ideological retaliation.
• International student restrictions: The Department of Homeland Security revoked Harvard’s certification to host international students in May 2025, and Trump issued a presidential proclamation targeting Harvard’s foreign students — both blocked by federal courts.
• Tax threats: Congress raised the endowment tax from 1.4% to an estimated 8%, costing Harvard approximately $300 million annually.
• Military education: Defense Secretary Pete Hegseth ended professional military education programs at Harvard in February 2026.
• Admissions scrutiny: The DOJ sued for access to individual student admissions files, and the Education Department opened a civil rights investigation into Harvard’s admissions practices.

International Reaction

The Chinese embassy in Washington pushed back against the investigation. Spokesperson Liu Chang said China-U.S. education cooperation is mutually beneficial, adding that “normal education and academic exchange should not be disrupted for political purposes,” as AP News reported.

Legal Implications

The DOJ’s argument represents a novel interpretation of Title VI. Legal analysts note that the law traditionally prohibits discrimination by the institution itself, not by private donors whose gifts come with restrictions. The department contends that by adhering to donor-imposed nationality restrictions, Harvard effectively discriminates against American students.

“Harvard appears to be accepting these funds and, in adherence to their restrictions, providing student financial aid to foreign students, presumably Chinese, based on their national origin — to the potential detriment of students of other national origins, including American citizens,” the agency said, according to Fox News.

What’s Next

The compliance review is in its early stages, and the DOJ emphasized it “has not reached any conclusions.” The outcome could have far-reaching implications for how U.S. universities manage foreign donations and international student financial aid, potentially reshaping the landscape of global higher education philanthropy.

Harvard has won key legal victories in court against the administration, but the government continues to pursue new lines of attack. With multiple lawsuits, investigations, and appeals still pending, the battle between the Trump administration and Harvard shows no signs of resolution.