First Circuit weighs Harvard research funding restoration

The First U.S. Circuit Court of Appeals heard arguments Monday over whether a federal district judge had authority to order the restoration of more than $2.6 billion in research funding to Harvard University. The panel did not rule, leaving unresolved the Justice Department’s challenge to the remedy and Harvard’s defense of it. Justice Department attorney Michael Velchik argued that disputes seeking payment under federal grants belong in the U.S. Court of Federal Claims, not a district court. He said the case concerns a contractual dispute and that the district court lacked jurisdiction to require the government to continue paying the grants. Harvard attorney Paul Clement countered that the university’s case is not simply about enforcing grant contracts. He argued that Harvard alleged retaliation and discrimination, and that restoring the funding was an appropriate remedy for those violations. Whether the district court could grant that relief is the central legal dispute before the First Circuit. The appeal challenges a September 2025 ruling by U.S.