US escalates scrutiny of Harvard with debarment move, funding in jeopardy

Harvard has 20 days to appeal the decision, but it could totally lose access to research grants, student aid and government contracts if the HHS debarment is upheld

Banners on the Harry Elkins Widener Memorial Library at the Harvard University campus in Cambridge
This is the first time the Trump administration has threatened Harvard with a total suspension of federal funding | Image: Bloomberg
Apexa Rai New Delhi
3 min read Last Updated : Sep 30 2025 | 10:52 AM IST
The US Department of Health and Human Services (HHS) has referred Harvard University for administrative suspension and debarment proceedings. The move could bar the Ivy League school from receiving any federal funding, including research grants, student aid, and government contracts. Harvard has 20 days to request a hearing before an administrative law judge to appeal the decision.
 
If the debarment is successful, it would deal a significant financial blow to the university, following the Trump administration’s previous freeze of over $2.6 billion in federal funding. 
 
The action forms part of the administration’s ongoing pressure campaign against elite universities, citing what it considers insufficient action against campus antisemitism and ‘radical left’ ideologies. This is the first time the Trump administration has threatened Harvard with a total suspension of federal funding.
 
The referral follows the Department of Health and Human Services (HHS) findings that Harvard acted with “deliberate indifference” towards allegations of antisemitism on campus. In July, the US Department of Education’s Office for Civil Rights (OCR) referred Harvard to the Department of Justice (DOJ) for stricter enforcement, after attempts to secure voluntary compliance reportedly failed. OCR Director Paula Stannard said the move “reflects OCR’s commitment to safeguard both taxpayer investments and the broader public interest”. HHS and the DOJ said they had “engaged in extensive communications” with the university in what officials described as unsuccessful efforts to ensure compliance with federal investigations.
 
The latest action escalates tensions between Harvard and the administration, which have been involved in multiple legal and regulatory disputes. In September, a federal judge ruled that the earlier suspension of $46 million in federal grants to Harvard was unlawful. The administration has said it intends to appeal the ruling.
 
Harvard is also facing separate investigations by the Education Department, which alleges the university failed to provide documents and data related to potential racial discrimination in admissions. A debarment could have wide-ranging consequences, potentially preventing students from accessing federal financial aid, loans, and prestigious fellowships such as Fulbright or Harry S Truman scholarships. 
Harvard University, located in Cambridge, Massachusetts, has not responded yet. Previously, the university has stated that it is committed to combating discrimination.
 
The administration has accused universities of permitting displays of antisemitism during pro-Palestinian protests. Protesters, including some Jewish groups, argue that their criticism of Israel’s actions in Gaza and its occupation of Palestinian territories should not be labelled antisemitism, and that their advocacy for Palestinian rights should not be equated with extremism.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Donald TrumpHarvardHarvard UniversityUS fundingUS universitiesDonald Trump administrationBS Web Reports

First Published: Sep 30 2025 | 10:52 AM IST

Next Story