The Justice Department opened a civil rights investigation into Harvard University on Monday, alleging that the university may be accepting donations from Chinese sources that restrict financial aid to foreign students, potentially violating federal law by discriminating against American students.
The investigation, announced by the Justice Department’s Civil Rights Division, targets Harvard’s China-based financial aid programs. Officials said the review was triggered after an audit of Harvard’s foreign-funding disclosures revealed that the university has received more than $630 million from Chinese sources over decades, more than any other American university. In total, Harvard has reported approximately $4.5 billion in foreign funding.
According to the Justice Department, some Chinese donors have placed conditions on how their money can be used, requiring Harvard to establish or support financial aid programs “with preference given to students from particular countries.” The agency alleges that Harvard has been accepting these restricted funds and, in adherence to the donors’ conditions, providing financial aid to foreign students, presumably Chinese, based on national origin. This practice, the department contends, could amount to illegal discrimination based on country of origin against American citizens and students of other nationalities.
Harmeet K. Dhillon, the assistant attorney general leading the Justice Department’s Civil Rights Division, stated: “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 is a compliance review initiated by the federal government rather than in response to an outside complaint. Notably, the Justice Department has not identified specific donors or scholarship programs under examination and emphasized that it “has not reached any conclusions” about potential violations.
One publicized example cited involves a 2014 donation by Pan Shiyi and Zhang Xin, a Chinese couple who co-founded the real estate company SOHO China. They donated $15 million to Harvard specifically to provide financial aid for Chinese students. Their gift reportedly drew criticism from some in China who viewed it as a betrayal to give money to foreign universities rather than Chinese institutions.
Unlike the vast majority of U.S. universities, Harvard is among a small group of schools that provides need-based scholarships to international students on the same basis as U.S. students. Federal grants and other government assistance are reserved for American students, but Harvard maintains its own scholarship and employment funds available to foreign students through private donations and contracts.
The Justice Department’s legal theory is unusual, arguing that steering private funding to students of certain countries constitutes a civil rights violation under Title VI of the Civil Rights Act of 1964, which prohibits discrimination based on national origin by institutions receiving federal funds. Because Harvard receives federal research funding—nearly $3 billion annually—it is subject to Title VI’s antidiscrimination requirements.
The Trump administration, in its announcement, has framed the investigation as part of a broader effort to increase transparency around foreign funding and combat national security risks. The White House has warned that accepting money from foreign adversaries poses threats to American security.
Harvard rejected the allegations in a written statement, saying: “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 Chinese embassy in Washington also responded to the investigation. Liu Chang, a spokesperson for the embassy, stated that China maintains “normal education and academic exchange should not be disrupted for political purposes,” adding that education cooperation between the two countries is mutually beneficial.
This investigation represents the latest in a series of federal inquiries the Trump administration has launched against Harvard. The administration has repeatedly challenged the university on issues ranging from admissions policies to campus protests and what it alleges is inadequate protection for Jewish students facing antisemitism on campus.
The Justice Department’s document demand is substantial, requiring Harvard to produce underlying gift agreements, internal policies, emails, text messages, chat communications and records showing how restricted Chinese funds were transferred or spent. The department also requested detailed beneficiary data for students who received aid, including information on nationality, citizenship, country of origin, amount received, school of enrollment and graduation status. Harvard was given until July 31 to respond, though the university can request an extension by contacting the Justice Department by July 24.
If the compliance review finds no violations, the department says it will close the matter. If investigators uncover evidence of discrimination, the Justice Department will initially seek voluntary compliance. A failure to resolve the issue could result in suspension or termination of federal assistance or lead to a civil lawsuit.