US Justice Department Probes Harvard Over Scholarships Linked to Chinese Donors

The administration of U.S. President Donald Trump has launched a new federal investigation into Harvard University, examining whether the school’s financial aid programs for international students; particularly those funded by Chinese donors, discriminate against American students in violation of U.S. civil rights laws. The probe marks the latest escalation in an ongoing confrontation between the White House and the Ivy League institution.

The U.S. Department of Justice’s Civil Rights Division announced that it is conducting a compliance review into Harvard’s “China-based financial aid programs.” The investigation will examine whether scholarship funds donated by Chinese individuals or organizations unlawfully limit eligibility to students from particular countries, potentially violating Title VI of the Civil Rights Act of 1964, which prohibits discrimination based on national origin by institutions receiving federal funding.

Assistant Attorney General Harmeet K. Dhillon, who heads the Civil Rights Division, said American students should have equal access to scholarship opportunities. She argued that universities cannot accept federal funding while also administering foreign-funded financial aid programs that allegedly exclude U.S. citizens based on national origin. However, the Justice Department stressed that the review is ongoing and that it has not reached any conclusions regarding Harvard’s compliance with federal law.

According to federal disclosures cited by the Justice Department, Harvard has reported receiving approximately $4.5 billion in foreign funding, including more than $630 million from Chinese sources over several decades. Investigators are examining whether restrictions attached to some of those donations require scholarships to favor students from specific countries, particularly China. One donation frequently cited is a 2014 gift of $15 million from Chinese real estate entrepreneurs Pan Shiyi and Zhang Xin, which was intended to provide financial aid for Chinese students studying at Harvard.

Harvard responded by saying it is reviewing the Justice Department’s notice and maintains that its financial aid policies comply fully with U.S. law. In a statement, the university said it fulfills all legal reporting requirements for foreign donations and “does not unlawfully discriminate on the basis of race, ethnicity or national origin” when awarding financial aid.

The investigation is part of a broader campaign by the Trump administration to increase oversight of elite American universities. Over the past year, Harvard has faced multiple federal investigations involving foreign funding, admissions policies, allegations of antisemitism, campus protests and the enrollment of international students. The administration has argued that greater transparency is necessary to address concerns over national security, foreign influence and compliance with federal law, while Harvard has accused the government of politically motivated efforts to undermine the university’s independence.

The Chinese Embassy in Washington also reacted to the investigation, saying educational cooperation between China and the United States benefits both countries and should not become politicized. The embassy urged both governments to protect academic exchanges and avoid actions that could discourage international collaboration in higher education.

Legal experts say the outcome of the investigation could have implications far beyond Harvard. If the Justice Department concludes that nationality-based scholarship restrictions violate federal civil rights law, universities across the United States that receive foreign-funded scholarships may be required to review or modify their financial aid policies. The compliance review is expected to continue in the coming months, with any enforcement action depending on the findings of federal investigators.