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Home Business

Trump Administration Moves to Terminate Federal Funding for Harvard University

GSA Directs Agencies to Cut Ties with Harvard

by Anochie Esther
May 28, 2025
in Business, News
Reading Time: 3 mins read
0
Havard

Image Credits: NPR

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In a dramatic escalation of its months-long clash with Harvard University, the Trump administration is moving to cancel all remaining federal contracts with the Ivy League institution, an estimated $100 million in active agreements. This decision is part of a broader campaign that has already seen more than $2.2 billion in grants frozen and threats to the university’s tax-exempt status and ability to admit international students.

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A letter dated Tuesday from the U.S. General Services Administration (GSA) was sent to multiple federal agencies instructing them to terminate contracts with Harvard University and submit a list of cancellations by June 6. The letter, signed by Josh Gruenbaum, Commissioner of the GSA’s Federal Acquisition Service, also urged agencies to find alternative vendors for services where Harvard might have previously been considered.

“Going forward, we also encourage your agency to seek alternative vendors for future services where you had previously considered Harvard,” the letter stated.

A government official, speaking anonymously because they were not authorized to go on the record, confirmed the letter’s authenticity. The New York Times was the first to publish it, and the move marks a significant shift in the government’s relationship with the university.

This latest maneuver represents a continuation of a deepening conflict between the Trump administration and Harvard, rooted in policy disagreements over hiring, admissions practices, and alleged political bias. The tension has built over recent months, with the administration accusing the university of partisan behavior and failing to uphold student safety and civil rights protections, particularly in regard to antisemitism on campus.

In April, the administration froze over $2.2 billion in federal contracts and long-term research grants after Harvard refused to comply with sweeping demands to alter its institutional policies. According to officials, Harvard was ordered to implement structural changes in admissions, faculty hiring, and campus speech regulations—demands the university characterized as unconstitutional and politically motivated.

Accusations of Antisemitism and Political Bias

In mid-May, a federal task force on antisemitism increased pressure by threatening to pull an additional $450 million in grants administered by eight federal agencies. This was in direct response to Harvard President Alan Garber’s written denial of the administration’s accusations, in which he stated Harvard was “not an arm of any political party” and reaffirmed the institution’s commitment to academic independence.

The administration has accused Harvard of failing to protect Jewish students, a claim the university strongly denies. Garber said in a recent interview with NPR that Harvard has made “substantial and real progress” in promoting campus inclusivity and countering antisemitism over the past year.

Legal Battle Over Funding and Academic Freedom

In response to the escalating actions, Harvard has filed a lawsuit to block the funding freezes and prevent further financial retaliation. The university’s legal team argues that the administration’s actions are unconstitutional, violate academic freedom, and infringe on First Amendment rights. A hearing on the case is scheduled for July.

Garber has been outspoken in defending the university’s autonomy:

“We need to be firm in our commitments to what we stand for,” he told NPR’s Steve Inskeep. “And what we stand for – I believe I speak for other universities – is education, pursuit of the truth, helping to educate people for better futures.”

Targeting Harvard’s Tax-Exempt Status and International Programs

In addition to the funding freeze and contract terminations, the Trump administration has also threatened to revoke Harvard’s tax-exempt status, which would have enormous financial implications. Just last week, it rescinded Harvard’s authorization to admit international students, a move that prompted immediate legal action from the university. A judge has since issued a temporary restraining order, allowing the university to continue its admissions process for international applicants—for now.

These actions represent an unprecedented level of federal intervention in the affairs of a private academic institution, drawing criticism from across the higher education sector.

Harvard’s legal and political standoff with the Trump administration is widely seen as a test case for federal power over academic institutions, particularly those perceived as politically progressive or resistant to government mandates. Legal scholars warn that a victory for the administration could embolden future governments to use federal funding as leverage to influence university policies on speech, curriculum, and faculty governance.

At the heart of the battle is a larger question: Can academic institutions remain independent while accepting federal funding, or must they conform to political pressures to maintain financial support?

The Trump administration’s decision to cancel Harvard’s remaining federal contracts signals a decisive turn in a high-stakes confrontation over the limits of government power, academic freedom, and institutional integrity. With lawsuits pending, funding frozen, and administrative threats intensifying, the outcome could reshape how American universities navigate their relationship with the federal government.

For now, Harvard remains defiant, asserting its right to operate free from political coercion. As President Garber put it:

“We will continue to stand for what is right, even if it costs us.”

 

Tags: #HavardfundingTrump
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