US probes Harvard over China-linked scholarships excluding American students

Washington,UPDATED: Jul 21, 2026 06:04 IST

The US Justice Department has opened a new investigation into whether Harvard University allowed Chinese donors to fund scholarships that exclude American students, adding to a series of federal inquiries the Trump administration has launched against the Ivy League institution. Officials said Harvard’s foreign funding disclosures had “raised concerns” about possible discrimination against US students, but added that the department “has not reached any conclusions”.

The review is focused on Harvard’s “China-based financial aid programmes”, with the department saying some Chinese donors gave money for aid limited to students from certain countries. According to the department, such restrictions could amount to illegal discrimination based on country of origin. Harvard said it was reviewing the notice and maintained that it does not unlawfully discriminate in allocating financial aid.

Announcing the compliance review on Monday, the Justice Department did not identify the scholarship schemes or donors under scrutiny. Harmeet Dhillon, who heads the department’s Civil Rights Division, said, “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.”

Harvard said in a written statement: “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.”

In a statement, Liu Chang, a spokesperson for the Chinese embassy in Washington, said China-US education cooperation is mutually beneficial. “China maintains that normal education and academic exchange should not be disrupted for political purposes,” Liu said.

Like many US universities, Harvard accepts foreign funding through direct donations or contracts. The Trump administration has been pressing for greater transparency about such money, warning that funding from foreign adversaries is a national security risk. Federal disclosures cited by the Justice Department show Harvard accepted USD 630 million from Chinese sources over decades and reported about USD 4.5 billion in foreign funding overall, though the department did not single out any donor or programme.

The review is a government-initiated compliance investigation rather than a response to an outside complaint. Harvard, unlike most US universities, gives need-based scholarships to international students on the same basis as US students. While federal grants and other aid are reserved for American students, a Harvard financial aid website says the university “has its own job and scholarship money available to foreign students”. In some cases, foreign donors have given money specifically for international students.

One such donation came in 2014, when Pan Shiyi and Zhang Xin, the Chinese couple who co-founded the real estate company SOHO China, gave USD 15 million to Harvard to provide financial aid for Chinese students. The gift drew criticism in China from people who said the money should have gone to Chinese universities instead.

The Justice Department said the case raises an unusual legal argument, claiming that directing private funding to students from certain countries could violate civil rights protections for US 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.

The inquiry comes as the Trump administration continues its wider battle with Harvard. The university has been a prime target in the administration’s push to end “wokeness” and fight alleged antisemitism in higher education. A federal judge has blocked the White House from cutting billions of dollars in federal research funding from Harvard, but the government has continued to pursue other lines of attack, including moves to limit the university’s ability to enrol foreign students and US military members, and fresh investigations into its admissions process. The latest review adds to that broader dispute over Harvard and its funding practices.

With PTI Inputs

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