The Justice Department has launched a civil rights investigation into Harvard University, examining whether the institution accepted foreign donations that improperly favored students from China and other countries over American applicants. The probe, announced Monday by the department’s Civil Rights Division, focuses on whether certain donor-imposed restrictions on financial aid violate Title VI of the Civil Rights Act, which prohibits discrimination based on national origin at federally funded institutions.
Assistant Attorney General for Civil Rights Harmeet Dhillon stated that every American student deserves an equal opportunity to compete for scholarships and financial aid. She emphasized that universities accepting federal dollars cannot use foreign funds to create aid programs that deliberately exclude U.S. citizens. The department’s review stems from an audit of Harvard’s foreign-gift disclosures, which revealed that the university reported nearly $4.5 billion in foreign funding — more than any other American institution — including over $630 million from China, its largest foreign source.
According to the DOJ, some donors based in China directed Harvard to use their contributions exclusively for students from particular countries. The department alleged that complying with these restrictions could disadvantage students of other nationalities, including Americans. While the investigation remains ongoing and no conclusions have been reached, officials stressed that the practice, if confirmed, would be illegal under federal civil rights law.
Harvard has denied any wrongdoing, asserting that its financial aid policies comply with Title VI and do not unlawfully discriminate on the basis of race, ethnicity, or national origin. The university stated that it follows legal requirements for reporting donations and allocates aid in a nondiscriminatory manner. Harvard provides need-based institutional aid to international students, while federal grants and government assistance are generally limited to eligible U.S. students. The institution also uses private scholarship and employment funds to support students from outside the country, with some private gifts designated for students from specific nations.
In 2014, SOHO China co-founders Pan Shiyi and Zhang Xin donated $15 million to support Chinese students at Harvard, though the DOJ has not confirmed whether that gift is part of the current review. The investigation adds another layer to the Trump administration’s broader scrutiny of Harvard, which has also faced federal inquiries over alleged antisemitism, admissions practices, and treatment of foreign students. A federal judge previously blocked the administration from cutting billions of dollars in research funding from Harvard as related litigation continues.
The DOJ’s action underscores a growing federal focus on the intersection of foreign funding and university financial aid policies. Federal law requires colleges and universities to report foreign gifts and contracts worth at least $250,000. The Civil Rights Division’s audit of Harvard’s disclosures prompted the current investigation, which could have significant implications for how elite universities manage donor-restricted funds from abroad.
Legal experts note that Title VI applies to any institution receiving federal financial assistance, which includes virtually all major U.S. universities. If the DOJ finds evidence of discrimination, Harvard could face penalties ranging from loss of federal funding to mandatory policy changes. The university, however, maintains that its practices are lawful and that it remains committed to providing equal opportunities for all students regardless of nationality.
