Trump admin flags Harvard with heightened cash monitoring, $36M LOC

The Trump administration on Friday imposed new federal restrictions on Harvard University, placing the Ivy League school on heightened cash monitoring status and requiring it to post a 36 million irrevocable letter of credit while using its own funds to disburse federal student aid before seeking reimbursement. The Education Department said the steps respond to growing concerns about Harvard's financial position amid multiple federal inquiries and recent institutional moves such as bond issuance and employee layoffs.

Under the heightened cash monitoring designation, Harvard must front federal student aid payments to ensure taxpayer funds are safeguarded, then request reimbursement from the Education Department. Officials also told the university to provide proof of financial stability and to guarantee that federal debts would be repaid if the school closes or suspends classes. The department warned Harvard that failure to comply with records requests from its Office for Civil Rights could lead to loss of all federal student aid eligibility.

Education Secretary Linda McMahon said the measures are intended to protect taxpayers and ensure Harvard meets its obligations. "Harvard...