Washington: The Trump administration has imposed fresh constraints on Harvard University’s access to federal funds, escalating its ongoing confrontation with the Ivy League institution. On Friday, the US Department of Education placed Harvard under "heightened cash monitoring" status, citing "growing concerns regarding the university’s financial position" and civil rights allegations connected to its campus policies.

Under this designation, Harvard must use its own resources to pay out student financial aid packages initially, and then seek reimbursement from the government, a shift aimed at ensuring "responsible" use of taxpayer money. Federal officials also ordered the university to post an irrevocable $36 million letter of credit to cover potential liabilities and ensure Harvard meets its financial obligations to students and the department.

This move comes on the heels of a recent judicial win for Harvard in Boston, where a judge ordered the administration to lift its freeze on around $2.6 billion in federal funds. The judge criticised the Department of Education, suggesting it weaponised antisemitism allegations as a "smokescreen for a targeted, ideologically motivated assault on this country’s premier universities."

Trump officials have accused Harvard and other universities of promoting so-called "woke" ideology and failing to adequately protect Jewish students during pro-Palestinian protests. Harvard has denied these claims, arguing that the federal government is instead seeking to control its hiring, admissions, and academic freedom.

Despite the heightened monitoring, Harvard reported on Friday the recovery of $46 million in research funding from the Department of Health and Human Services, expressing hopes for further restoration of funds from other agencies. The university declined to comment on the latest restrictions, focusing instead on the incremental progress in the resumption of federal funding.

With inputs from AFP